Team DailyPedia
Marikina City 2nd District Representative Miro Quimbo has expressed opposition to proposals seeking the removal of value-added tax (VAT) on fuel, warning of potential economic consequences despite increasing public calls for relief from rising petroleum prices.
Quimbo, who also chairs the House Committee on Ways and Means, emphasized that eliminating VAT on fuel could negatively impact the country’s financial standing.
“Ang epekto niyan, hindi lang ang kawalan ng government revenue but more significant na hindi nakikita ng marami nakakaapekto sa credit rating natin,” he said.
According to the lawmaker, maintaining a strong credit rating is critical, as it directly influences how international creditors assess the country’s ability to repay its obligations.
“Kapag ang ating credit rating ay mababa ang number one na nakakaapekto is your ability to repay,” Quimbo explained.
He added that a lower credit rating could have a ripple effect on ordinary Filipinos, as financial institutions may impose higher interest rates on various types of loans.
This includes housing loans, car loans, and other personal or business financing, which could become more expensive if borrowing costs increase.
Quimbo’s remarks come as lawmakers continue to explore measures to ease the burden of high fuel prices. Congress has recently approved a measure authorizing the President to suspend or reduce excise taxes on petroleum products amid the ongoing oil crisis.
