ROXAS: ZERO VAT ON OIL IS BETTER ECONOMIC STIMULUS PACKAGE
ECONOMY'S PERFORMANCE OK, BUT NOTES WEAKER CONSUMPTION

Senator Mar Roxas today said the government should instead push for the suspension of the value-added tax on petroleum products, saying it would be a better alternative to an economic stimulus package.

"Instead of debating whether to push through with this P75 B economic stimulus package, what should it contain and how should it be implemented, why doesn't the government economic team consider a simple, implementable and straightforward move to put more money into the pockets of the people?" he said.

"Itong P75-bilyon na 'economic stimulus package,' komplikado pa iyan. Ang panukalang pagtanggal ng VAT sa langis ay malinaw na kaagad na mararamdaman ng ating mga commuters at maybahay." he added.

Roxas, Chairman of the Senate Committee on Trade and Commerce, notes that a feared economic slowdown would be due to weaker purchasing power, thus, the solution should be on how to put more money in people's pockets.

"Ngayong pinangangambahan na magkaroon ng 'economic slowdown,' lalong mahalaga na isauli muna ng gobyerno ang pera ni Juan dela Cruz. Pera niya iyon, at siya ang higit na nangangailangan dito kaysa ang gobyerno," he said.

While the performance of the GDP is 'stellar' in nominal terms--at 7.3% growth for the whole year--Roxas pointed out a slower growth in consumption in the fourth quarter. Traditionally, personal consumption is much stronger during the holiday seasons.

"'Seven-in-'07,' certainly, is a good headline: the recovery or growth of the agriculture sector and the continued strength of the services sector deserves applause," he said.

"But at the same time, if you look at consumption of food, clothing and other consumer items during fourth quarter, it's a bit slower year-on-year," he said.

He noted that Food consumption grew a bit slower at 6.6% in the fourth quarter versus 6.8% in the same period last year; and for Clothing and Footwear, 2.4% versus 6.5%. At the same time, Fuel, Light and Water spend grew stronger 4.3% versus 1.5%, and Miscellaneous spend grew 7.8% versus 5.7%.