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In my other thread entitled, "Pnoy says, 'Never stop defending freedom. What is your reaction on this?", I clearly pointed out in my second to the last paragraph that PRRD should, "stabilize our source of energy or power, for this is the heart of our economy. Without a stable energy/power, it would mean death to our economy." This energy source or power does not only mean the kind of energy that we need to power our homes but rather energy that keep vehicles move.
I also mentioned in item number 7 of the same thread that there is a need for tax reforms and my prayers were granted through the passage of TRAIN Law. The TRAIN Law or (Tax Reform and Inclusion) is important to augment the national budget. Without it, government will have problems providing services and the infrastructures needed for its citizens.
The TRAIN law puts an additional tax on energy source which is fuel and this tax is called, 'excise tax'. The only problem with this tax is, it coincides with the increase in fuel prices last year that aggravates the inflation. So that when you have fuel prices go up, it has a domino effect on the prices of goods usually transported by vehicles which consume fuel. As prices went up last year, the outcry of the masses and the public utility drivers went far also. The public outrage stalled the excise tax on fuels for the moment however on the first quarter of 2019, the second tranche is again implemented.
The excise tax is expected to generate around P120 Million a year, good enough to fund the universal health care of the Filipinos and funding other programs of the government as purported. However, noble it may seem but there are times that it defeats the purpose when more of the marginalized are affected.
I think what the government needs to do to alleviate the situation are the following:
1. Government should push through with the phase out of old vehicles especially the public transport sector and give them the alternative to buy hybrid or electric powered vehicle instead. This will solve the dependence of transport groups on liquid fuels which give them short of income and fond of grumbling. Maybe the government could provide easy loans to those who want to dispose their old PUVs and aging delivery trucks.
2. Government should look into other fuel sources like Indonesia and Venezuela, fuels are cheaper when fuel suppliers are not members of OPEC which controls most of the prices in the market. Government should support small players who want to sell cheaper alternative fuels.
3. Government should build infrastructure or a system for cyclists and control ownership of vehicles. Riding bicycles is the best way of saving money, promote good health and well-being and is environment friendly. Bicycles do not pollute unlike motor vehicles. Ownership of vehicles should be limited to one per family only to ease traffic and congestion. Those who owned more than one should pay more excise taxes.
4. Government should support local auto industry that manufactures electric powered cars, trucks, etc. Locally made or those assembled hybrid or electric powered vehicles should enjoy tax holidays. Imported cars on the other hand should be taxed heavily.
5. Government should only give fuel discount cards to those who are willing to switch to hybrid or electric powered vehicles within a given period of time. Those who are not willing must face the consequences of their action and take responsibility for it.
Any reaction?
I also mentioned in item number 7 of the same thread that there is a need for tax reforms and my prayers were granted through the passage of TRAIN Law. The TRAIN Law or (Tax Reform and Inclusion) is important to augment the national budget. Without it, government will have problems providing services and the infrastructures needed for its citizens.
The TRAIN law puts an additional tax on energy source which is fuel and this tax is called, 'excise tax'. The only problem with this tax is, it coincides with the increase in fuel prices last year that aggravates the inflation. So that when you have fuel prices go up, it has a domino effect on the prices of goods usually transported by vehicles which consume fuel. As prices went up last year, the outcry of the masses and the public utility drivers went far also. The public outrage stalled the excise tax on fuels for the moment however on the first quarter of 2019, the second tranche is again implemented.
The excise tax is expected to generate around P120 Million a year, good enough to fund the universal health care of the Filipinos and funding other programs of the government as purported. However, noble it may seem but there are times that it defeats the purpose when more of the marginalized are affected.
I think what the government needs to do to alleviate the situation are the following:
1. Government should push through with the phase out of old vehicles especially the public transport sector and give them the alternative to buy hybrid or electric powered vehicle instead. This will solve the dependence of transport groups on liquid fuels which give them short of income and fond of grumbling. Maybe the government could provide easy loans to those who want to dispose their old PUVs and aging delivery trucks.
2. Government should look into other fuel sources like Indonesia and Venezuela, fuels are cheaper when fuel suppliers are not members of OPEC which controls most of the prices in the market. Government should support small players who want to sell cheaper alternative fuels.
3. Government should build infrastructure or a system for cyclists and control ownership of vehicles. Riding bicycles is the best way of saving money, promote good health and well-being and is environment friendly. Bicycles do not pollute unlike motor vehicles. Ownership of vehicles should be limited to one per family only to ease traffic and congestion. Those who owned more than one should pay more excise taxes.
4. Government should support local auto industry that manufactures electric powered cars, trucks, etc. Locally made or those assembled hybrid or electric powered vehicles should enjoy tax holidays. Imported cars on the other hand should be taxed heavily.
5. Government should only give fuel discount cards to those who are willing to switch to hybrid or electric powered vehicles within a given period of time. Those who are not willing must face the consequences of their action and take responsibility for it.
Any reaction?
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