CinemaBravo

Amid growing public clamor to reduce fuel costs, Marikina City 2nd District Representative Miro Quimbo voiced opposition to proposals seeking the removal of the value-added tax (VAT) on petroleum products.

Quimbo, who chairs the House Committee on Ways and Means, said the move could bring wider economic consequences beyond the immediate loss of government revenue.

“Ang epekto niyan, hindi lang ang kawalan ng government revenue but more significant na hindi nakikita ng marami nakakaapekto sa credit rating natin,” said Quimbo.

(The effect of that is not only the loss of government revenue, but more importantly, what many do not see is that it affects our credit rating.)

Quimbo said keeping the country’s high credit rating is crucial, as creditors use it to determine the interest rates they impose on the government’s loans.

“Kapag ang ating credit rating ay mababa ang number one na nakakaapekto is your ability to repay. (When our credit rating is low, the number one thing affected is your ability to repay),” he explained, adding it could lead to banks imposing higher interest rates on housing loans, car loans, and other personal or business loans.

Congress recently approved the measure authorizing the President to suspend or reduce the excise tax on fuel products amid the ongoing oil crisis.