Arroyo still upbeat about tax bill

Arroyo still upbeat about tax bill

MANILA: Philippine President Gloria Arroyo remained hopeful Congress would pass a crucial value-added tax (VAT) bill after legislators failed to meet a deadline and enact the law, an official said on Saturday.

"We still believe that in the end, the legislators will hear the call of our president because this is what is needed by the country," Arroyo spokesman Ignacio Bunye said in a radio interview.

Bunye said measures to keep higher taxes from hurting the poor would be enacted but he stressed: "What is important is that there should be a swift decision by the bicameral conference committee.

"We hope they will not prolong it further."

His remarks came after members of both houses of Congress failed to pass a bill raising the VAT.

Bunye reiterated that Arroyo was still hoping legislators would pass the bill hiking the VAT from 10 to 12 percent rather than another version favored by some legislators to increase corporate income taxes instead. -- AFP