VAT agitating people to wage armed struggle vs GMA

Rubi Del Mundo
Spokesperson
National Democratic Front-Southern Mindanao
February 02, 2005

Gloria Macapagal-Arroyo is increasingly becoming the best teacher of the people on the militant struggle and revolution to overthrow her regime. Her regime refuses to raise wages at decent levels, tolerates greed by oil firms and steady oil price increases, gives away precious gold-rich lands to foreigners and, recently, as if to top it all, is imposing additional taxes on the Filipino�s basic food and other needs.

The National Democratic Front- Southern Mindanao finds the 12 percent VAT (Value Added Tax) revenue measure a thoroughly vicious imposition that is agitating the people to rise up and frustrate this regime.

Contrary to claims made by the US-Arroyo regime�s talking heads, the 12 percent VAT cannot solve the country�s annual P180 billion-budget deficit. Raising money from the Filipino masses to solve the problems brought on by "free market" globalization and effects of the export-oriented and import-dependent character of our economy is certainly not the solution. Simply put: sources of government funds are running out because of expensive imported inputs for our local industries and swamping of foreign goods.

While the Filipino people suffer from reduced, if not negligible health and other public social services, the Arroyo regime remains a faithful debt payer, squandering about 80% of government revenues to foreign debt payments yearly. The regime also remains inept running after big capitalist tax evaders.

To stave off mounting people�s fury, Arroyo diehards describe points opposing the VAT as "exaggerated." It is the height of callousness when Davao City Rep. Prospero Nograles says that the VAT�s "impact is not really that big," that the additional costs to sardines, noodles and sugar, for instance, could not even reach one peso.

Peasants in the countryside could hardly afford the rising cost of farm inputs and transportation cost for their farm produce. In Southern Mindanao, massive exploitation and landgrabbing in the countryside are even more heightened with the recent Supreme Court final ruling on the Mining Act which granted full ownership by large-scale export-oriented foreign mining monopolists.

Workers in the region are dismayed with the P14 raise in minimum wage, an amount not even sufficient to buy a kilo of rice. Cybersex in Davao City and other big cities are thriving big business as women and children are more and more lured in the business of prostitution to survive the crisis.

Worse, the local utilities are threatening to increase cost of electricity and water rates in the wake of the economic crisis by as much as 60%. The GRP�s City Council in Davao also had the gall to amend the local tax code to raise local revenues.

It is only just that the Filipino people unite to overthrow a regime which oppresses and puts the people�s welfare last on its agenda. Professionals and other petty urban bourgeoisie are increasingly persuaded to join the broad anti-Arroyo regime to fight the regime�s anti-people measures.

Finding no solace under the present system, the working class and the poor peasants are all the more agitated to join the armed revolution. Under the present deplorable conditions, Red fighters and the revolutionary masses in Southern Mindanao are ever more on the moral high ground to intensify mass struggles and armed tactical offensives in the months to come.***