LETTERS FROM THE AGNO

BAELCO, VAT, oil deregulation
MARCH L. FIANZA

BAGUIO CITY -- Listening to friends talk about the Baguio Electric Consumers Coop., most of them were one in saying that the proponents must present to Baguio power consumers a concrete program on how they can go about providing electric service to the consumers.

They requested that their identities, for obvious reasons, be withheld in the meantime. And so I will name them Leo, Jun, and Mary. They too, are familiar with how cooperatives operate but understand that electric cooperatives are entirely unique from the way the affairs of cooperative sari-sari stores or housing cooperatives are done.

Jun who has been working with the CDA for many years now is also aware that electric cooperatives are mandated to toe the provisions of the Electric Power Industry Reform Act (EPIRA), such as seeing to it that the unbundled rates appear in the billing of customers. It is not one that was invented by the electric coops to satisfy their whims.

On the other hand, Mary who has been with the COA since 1990 knows that cooperatives under the CDA may avail of benefits as long as its assets are maintained at P10million. She doubts if electric cooperatives will benefit from such provisions in the CDA considering that electric cooperative assets exceed P10million.

I learned a lot from eavesdropping during their conversation. Leo, a member of a CDA registered cooperative in Tabuk said sales are taxable to customers who are not members of the cooperative.

These facts, I did not know. So it seems, not everything is being informed by the proponents of Baelco. Also, corporations may not become members of coops because these are non-persons. At the same time, the proponents of BAELCO should be congratulated for their efforts to awaken electric power consumers with regards electric power service in their communities.

Whatever, in the end the ultimate questions that consumers would like to be answered are: First, does Baguio really need to be under a new electric cooperative separate from Beneco? Second, will the creation of a new and separate electric coop lower power rates and improve electric service?
***
As we go to press, several sectors that are now suffering from the squeezing effect of the series of fuel price increases that seem to be continuing are out in the streets demanding that the oil deregulation law and the expanded VAT be thrown in the trash basket.

I remember that these laws respectively met “violent” opposition while these were being discussed in congress. At the same time, the proponents of the laws went out to reach even the farthest LGUs to campaign about the “good” effects of their proposed bills.

In their info-campaign they said the government needed money for infrastructure that would come with the passage of the VAT. They went on to further say that the prices of noodles and other basic goods will not be affected by VAT. What was promised then is not what people are experiencing at present.

But, owing the passage of laws in congress to numbers, the oil deregulation bill and the EVAT bill became what they are now – “not so wanted” laws. The laws are “not so wanted but not so liked” at the same time in the sense that there are positive things about them.

For example, President Gloria plowed back part of the VAT collections to pay for the electric consumption of end-users who consumed only 100 kwh and below. The sad part of it is that the VAT is collected from every single person in the country everytime he or she spends money, but does not feel the good life and good economy that has been promised by the proponents of the law.

The sadder thing is that not even the shadows of those who campaigned for the passage of such laws are no longer around to help ease the painful effects of what they crafted. Today, store prices of noodles and other goods are almost double.

Anti-VAT groups said that removal of the VAT only on fuel products and billing on electric power consumption – not on all ‘vatable’ commodities, will not drain the government of its much needed resources. They look at this as a relief.

Meanwhile, their allies in congress further argued that removing the VAT on fuel and power consumption billing will directly benefit the end-users since the tax that was supposed to be collected stays with the consumers. At the same time, government could still collect VAT on other commodities.

On another front, the same parties including the public transportation sector want the oil deregulation law scrapped. The objective of the deregulation law was to lift government control over matters involving the fuel business, including non interference with pricing, export and import of these products.

Lawmakers then knew the consequences in the lifting of the controls. Today, consumers feel the effects of the law and scrapping it is not as easy as when it was put in place.

Government spokesmen scamper to announce assurances that they are doing everything, then contradict themselves by saying that the problem is ‘global’ and that they have no control over it.

Lately, news had it that the government is appealing to Filipinos for greater understanding about the fuel price increases, and that unity is needed among Filipinos in order to face the challenges. But the aggrieved parties were quick to counter the government statements.

“No amount of unity and understanding can lower the prices of fuel,” the suffering sectors claimed. Removing the oil deregulation law and fuel VAT are still the best means to liberate them from their burden. -