MAR ROXAS: "SUSPEND VAT ON OIL PRODUCTS"

Senator Mar Roxas, an economist knows what he is talking. He is moving for the suspension of the Value Added Tax (VAT) on oil products to cushion the impact on the Philippine economy the increase of price of crude oil.

Here's a transcript of Senator Mar Roxas' January 10,2008 interview on ANC's 'Dateline' on the Palace's nixing of Sen. Roxas' proposal to suspend VAT on oil products:

Q: The President is lowering tariffs on oil importation, which will lead to a 50-centavo reduction per liter in fuel prices and P11 billion in foregone revenue. What do you think of that?

MAR: Not enough, inadequate, tokenism. The government has to get ahead of the curve. Oil prices have reached $100 a barrel at the New York Mercantile Exchange. All the analysts say that this will be the new band or the new area where oil prices are going to be. The time of $30-$20 oil is going to be long gone already. This is the new reality we have, and this tariff cut is simply not gonna make it. Admittedly it's a good start, and when Congress is not in session, this is all the executive can do, adjusting tariffs. But I would say, let's change the law. I've been saying this for some time now. Let's take the VAT away from petroleum products.

Q: How does your proposal translate in savings?

MAR: In the present oil prices, a reduction of 12% VAT would translate to P4 per liter for diesel or more than P60 for an 11-kilo LPG tank. So these are huge savings, it's enough scale to actually modify consumer behavior, to actually have an impact in the broader economy. Second, government will not actually lose this. Whatever you save in a 40-liter tank, that's P160, when you go out and buy Jollibee or McDonald's or something, there's a VAT on that right away. So government will also catch it, in the next go-around. They will capture it. The point is, the government is being lazy about it. They only want to talk to three oil companies, when they should be collecting this from every store and enterprise that sells to the people. This is going to have a cash-flow impact, rather than a real collection impact.The price of diesel right now is P38.50 per liter, the VAT component of that is P4. It becomes P34, with P4 straightaway saved. With LPG, it's almost P65 per tank. There's going to be real savings for the people, and they will also spend. And with that point of view, it's not going to be a loss to the government.

Q: Are you concerned that the savings won't actually happen because the oil companies will say they have underrecoveries and find some reason not to lower prices?

MAR: No, because the VAT is on top of whatever their pricing is. Whatever their pricing is, the VAT is automatically removed from that.

Q: And if they fiddle around with it, that could be checked?

MAR: That's right. More importantly, the earlier news said oil companies were looking at another P3 of uncaptured increases yet, meaning the inventory levels that are being reflected by the pump prices today are based on $85/barrel oil. Oil is now in the $90s range, and the companies might have another P3-P4 of unpassed-on increases. So 50 centavos is not going to be much. That's not going to substantially change the quality of life of a housewife, of a driver, of someone in the transport sector, anybody delivering eggs, vegetables, fish or manufactured products.Oil is one of those things that are present in nearly every product, either because of the transport or the raw material - plastics really come from oil as well. The point is, by taking out the oil VAT component in pricing, you'll be able to help the entire economy across the board without the government really suffering because all of the savings of the consumer will be captured subsequently.

Children - The Heritage of the Lord

Peter replied, "Repent and be baptized, everyone of you, in the name of Jesus Christ for the forgiveness of your sins. And you will receive the gift of the Holy Spirit. The promise is for you and your children and for all who are far off - for all whom the Lord our God will call."

(Acts 2:38,39 NIV)

The importance of children is not only philosophical or legal but also biblical. The City of Vigan does not only care for its tangible and intangible heritage but also for its children --- the future generation. Anyway, the protection of Vigan's heritage is for the next generation. As a child-friendly city and as a religious center being the seat of the Archdiocese of Nueva Segovia, the responsibility of protecting the Children, the Heritage of the Lord and Vigan's rich legacy is not only a governmental function but ecclesiastical as well.

Vigan Longganiza Streedancing (College) 1

Vigan Longganiza Festival Streetdancing (College) 2

VIGAN LONGGANIZA FESTIVAL STREETDANCING (High School)

TRADITION AND TRANSITION: 7 YEARS OF CITYHOOD, 250 YEARS OF NUEVA SEGOVIA

Today, we celebrate the Cityhood of Vigan. Technically speaking, we are celebrating the 7th year anniversary of Vigan as a City from the time of the ratification of Republic Act 8988 in January 22, 2001. Historically, we have started celebrating the 250 years of Ciudad Fernandina from the time the seat of Nueva Segovia was transferred from Lallo, Cagayan to Vigan way back September 7, 1758 by virtue of a Spanish Royal Decree issued by King Fernando VI. Indeed it is a celebration of civilization.

We will also be launching the Amended Vigan Revenue Code. Do not be alarmed because the rates were merely updated from the outmoded to the reasonable. The outputs of the cultural mapping project are also on display and we will also be witnessing the launching of the Gawad Kalinga Housing Project.

The City's Vision is to make Vigan a globally competitive World Heritage City. Along this line, we do not merely celebrate our fiesta but we give meaning and substance to every form of celebration. We want the people of Vigan and our visitors to really appreciate Vigan's legacy of the past, not only physically but more specially historically and culturally.

Tradition and Transition is a story of Vigan's Rise, Vigan's Turning point, and Vigan's Re-birth. Ladies and gentlemen, welcome to this celebration.

(Welcome remarks delivered by Vice Mayor Franz Ranches on the occasion of the opening of the Tradition and Transition Exhibition at the Vigan Culture and Trade Center)

Vigan Longganiza Festival Street Dancing (Elementary Division)

LESSONS LEARNED FROM HOI AN, VIETNAM

The trip to the Socialist Republic of Vietnam makes the members of the Vigan City Council wonder in awe how this country survived an infamous war and becomes a favorite destination of tourists.

Let's take the case of HOI AN. Referred to as an old town, the place is a World Heritage Site recognized by UNESCO. In here, one can find rows of shop houses of Chinese and French influences. Compared to Vigan, our ancestral houses are far more grandiose and aesthetically imposing but Hoi An has more visitors who come in millions, considering that both place were inscribed in UNESCO simultaneously in 1999. I've been wondering why Hoi an has more visitors than Vigan. National factors might have affected Philippine Tourism in general such as the issues on kidnapping, bombings, street crimes(hold-up robberies, pick-pockets, cellphone or bag snatching, and the like) in urban centers like Manila. Unlike in Vietnam, the Philippine national government is not agressively promoting heritage sites like Vigan as tourist destination. Hoi An is being promoted agressively by both the local and national governments of Vietnam. Another factor is the souvenir items. Hoi An has plenty of them while Vigan has to rely on suppliers outside Vigan. Local artists such as painters, wood carvers, lantern makers, embroiders, pottery makers and performing artists among others abound in Hoi An. Hence, traditional crafts and industries of the town are income earners.

The ticketing system of the tourism department of the place is very entreprenurial. Instead of the traditional entrance ticket at the Historic district, the ticketing system was done in such a way that those availing it can visit and view one of the 4 museums, one of the 4 old houses, one of the 3 assembly halls, handicraft workshop and traditional music performance, and either the Japanese Bridge or Quan Cong Temple. Revenue capture by the local government of Hoi An is ensured through this package heritage walks in the form of one ticket with several stubs worth only 75,ooo Vietnamese Dong or 5 US dollars per head.

Tourism in Hoi An is so vibrant. Aside from the historic district it can boast of a port where trade and commerce is very much alive. Restaurants are mostly operated by members of families who act as cooks, food servers and managers. The World Class Hoi An beach resort which is owned by the Provincial Government of Qua'ng Nam has opened its doors to investors. Around 40% shares have been offered to the private sector.

The trip to Hoi An, Vietnam is indeed a learning experience!

HOI AN, VIETNAM: A World Heritage Site

A LIBERAL PERSPECTIVE IN 2008 AND BEYOND

Time flies so fast. It's 2008, and the Philippines remains a third world country while the most developed ones kept on improving every year. People readily blame the politicians and existing government policies. But there are other and inner reasons why our country had a hard time getting itself out of economic difficulties. In fairness to the present administration, modest economic gains have been achieved. The Philippine economy surged in the first quarter of the year. According to Romulo Virola, Head of the National Statistical Coordination Board, first-quarter gross domestic product was up 6.9 percent on an annual basis and grew a seasonally adjusted 2.5 percent from the previous quarter. The peso significantly gained strength against the U.S. dollar due to tha latter's weakening and the strong remittances of Overseas Filipino Workers(OFWs) especially during the holiday season.

Let us try to look into the deeper reasons. The fact that the peso is tied to the dollar makes our economy susceptible to the dictates of foreign business interests. The Asssociation of Southeast Asian Nations should consider coming up with a common regional currency to strenthen the economic position of members states. Despite globalization, loopsided economic policies of rich nations work against poorer ones like the Philippines. Our dependence on oil importation is a major factor in hampering the country's economic growth. Without these, the Philippines could have performed better. A liberal orientation on governance might provide the solution. As clearly stated in the Primer on Liberalism authored by Dr. Julio Tehankee, Liberals believe that liberty is the best remedy against poverty. Liberals believe in the principle of freedom of the individual and a set of inalienable human rights. Extereme poverty is a daily attack on the right to life of an individual and therefore cannot be tolerated by liberals. A market economy based on economic liberalism, competition, and free trade as defined by Adam Smith is the framework that we need. LET'S WELCOME 2008 AND BEYOND WITH A LIBERAL PERSPECTIVE!