VAT not storm grounds Iloilo fishing boat owner
Even as President Macapagal-Arroyo remains firm against scrapping the value-added-tax (VAT), one of the biggest fishing boat owners on Panay Island has ordered his vessels to be grounded indefinitely in protest over the controversial tax measure.
Around 30 fishing boats, ranging from 50 to 125 feet in length, of the Jumbo Fishing Corp. have not left the port of Iloilo since June 10 because of the soaring prices of oil products, said Arnaldo "Jun" Borres Jr., owner of the fishing boats.
But since last Friday, until yesterday, the State of the Nation Address of President Macapagal-Arroyo, streamers against the VAT were displayed on the boats.
"Biktima sang VAT. Sin-o ang dason! (VAT Victim! Who's next?)," the streamers read.
"It's our way of showing what we feel because our appeals have fallen on deaf ears," Borres said in a telephone interview.
Borres, also president of the Panay Fishing Boat Operators Association, said they have repeatedly called for the removal of the VAT on oil products which amounts to around P6 per liter. But he was disappointed upon hearing the President defend the VAT during her SONA yesterday.
"She tells us that government will continue to collect VAT so she can spend to the poor. But the ones they are taxing are getting impoverished. It's like milking the cow to the death," he said.
Borres said they decided to suspend their operations because they continue to incur losses now amounting to millions of pesos because of the high fuel prices.
Their operations alone uses around 300,000 liters of fuel per month for around 30 fishing boats that cover areas as far as Palawan.
Borres said a single fishing boat consumes 5,600 liters of fuel for a trip to the fishing ground and back to the Iloilo.
"We pay P1.8 million per month for VAT alone for the fuel we use. It's too much for us," said Borres.
He pointed out that many business operators and consumers have been clamoring for the removal of VAT. Other fishing boat operators have been forced to cut down their work force or stop their operations, said Borres.
He said along with the grounding of their vessels, around 400 workers and their families do not have any income.
"We won't do this if we are still surviving," he said.
He said they do not know when their operations will resume.
"We are seeking shelter and dropping anchor to allow the storm to pass," said Borres.
Borres said that removing the VAT will not only benefit business operators but consumers.
He said business owners have no choice but to pass on the increase in production costs to consumers who will ultimately bear the burden
Employees would also continue to demand higher wages which would burden employers forcing them to down size their work force or close shop, he pointed out.