Filipino Expats Qatar

Press Release: 5 July 2008
Riyadh, Saudi Arabia

No more “Katas ng Saudi”, OFWs little earning simply passes on “Katas ng VAT”

“No more “Katas ng Saudi”! OFWs are bleeding dry!” thus, said today by the Middle East chapter of Migrante International in the midst of increasing prices of food and fuel that caused the country’s inflation rate to reach a 14-year high.

“With food inflation up to 17.4% and fuel inflation up to 22% as reported by the Bangko Sentral ng Pilipinas in contrast to the meager income of millions of ordinary OFWs receiving only US$350 to US$500 a month, the so called “Katas ng Saudi” or OFW earning becomes a myth and a wish of every OFWs,” said John Leonard Monterona, Migrante Middle East regional coordinator.

Migrante’s Monterona said that the series of price increases of fuel with multiplying effect to the prices of other basic commodities is a painful economic reality OFW families, mostly workers and peasants, are facing now.

Monterona cited the increasing cost of an 11 kg. liquefied petroleum gas (LPG) that increased by P76.94 to almost P600 from January to December 2007. “Now, how much is the cost of an 11 kg. LPG?” he asked.

He noted as well the Manila Water early this year has implemented a rate hike costing its consumers who consume 30 cubic meters per month an additional P60 on their bills.

“That is why our dependents are asking us and fellow OFWs to send more which forces us to tighten our belts and remit almost all of our wages to make up for the lost value. This lead us to look for a part-time job just to send more for our families back home who are bleeding dry due to soaring prices of foods and basic commodities,” Monterona added.

Yesterday, Deputy Presidential Spokesman Lorelei C. Fajardo assured the public that the Arroyo government remains “committed to seek ways to soften the impact of inflation and the continuing rise in fuel costs."

Monterona said that the Arroyo government, if it has political will for the common good, could initiate “doable” economic policies that provide relief to consumers and the public in general.

“Foremost to the lists of “doables” the Arroyo administration could initiate is the removal of the Value Added Tax (VAT) on power and petroleum products to give consumers especially the poor masses, OFWs and their families’ immediate relief from rising prices greatly affecting every OFW households’ meager income,” Monterona said.

The OFW leader cited the study initiated by the Bagong Alyansang Makabayan (BAYAN), where Migrante is a member-organization, which he said scrapping the VAT on oil or VAT cancellation can immediately bring down pump prices of unleaded gasoline by P5.83 per liter; kerosene, P5.29; diesel, P4.98; and liquefied petroleum gas (LPG), P68.83 per 11-kilogram cylinder.

“The Arroyo administration must set aside its greed for the P54 billion annual revenues collected from VAT imposition on oil products,” Monterona added.

Monterona said that the Arroyo regime only appears to be worried and concern for its consuming public on soaring prices of food and petroleum products but is not willing to implement the much “doable” intervention by removing the VAT on power and petroleum.

“With VAT on power and petroleum, higher prices mean more revenues for the Arroyo regime lauded by its foreign creditors to assure debt payment by the former,” he continued.

Last Wednesday, the International Monetary Fund (IMF) warned the Arroyo regime of the negative effects of removing or reducing VAT on petroleum products by saying “tax cuts on oil would benefit higher income households. Since these groups consume more goods, they are also expected to enjoy discounts with the tax cut”.

“We are aware that if IMF speaks, the Arroyo regime listens though it is to the detriment of the majority of the Filipino poor masses,” Monterona added.

Monterona said that the poor masses along with OFWs and their families have already spoken in support of the call to remove VAT on power and oil. It is only through coordinated mass actions that the Arroyo regime will be forced to listen and act on our demands.

“We are calling all OFW-families, dependents and relatives to heed on our people’s call to remove VAT on oil and power by joining scheduled mass actions to put more pressure on the Arroyo regime serving its Imperialist master rather than the toiling masses,” Monterona ended.

For reference:
John Leonard Monterona
Migrante Middle East regional coordinator
Mobile No.: 00966 564 97 8012