BY REGINA BENGCO

MALACAÑANG yesterday said it is leaving to Congress the task of suspending the 12 percent value-added tax (VAT) on oil and petroleum products so as not to court an impeachment complaint against President Arroyo.

Chief presidential legal counsel Sergio Apostol said Arroyo could not order a moratorium on the VAT on oil products because the Constitution gave that power to Congress, not to the President.

Apostol said the expanded VAT law is a congressional act and cannot be superseded by the Chief Executive.

"If the President orders the suspension of the EVAT law, another impeachment complaint may be filed against her for culpable violation of the Constitution," he said.

He also said the President is duty-bound to implement the laws and she "cannot refuse to carry out a law for the simple reason that in her judgment, it will not be beneficial for the people."

"The Palace cannot do it. Let Congress do it," he said.

However, he said the President would not certify a bill seeking the suspension of VAT on oil products and would just "leave it that way."

The Palace is against the suspension of the VAT on oil products, saying it would result in a revenue loss of P60 billion annually.

Sen. Mar Roxas, in Senate Bill 1962, proposed a VAT suspension for six months or until world oil prices have stabilized. He said the suspension would effectively reduce fuel prices by about P4 per liter, and cost government P52 billion in foregone tax revenues annually. At this rate, the six-month suspension of the VAT on oil products would cost the government P26 billion, he said.

Roxas said the amount of potential tax revenues that will be waived by government is actually lower, at around P23 billion over a six-month period because "once government puts the P26 billion in the pockets of consumers, the money will surely get spent on some form of taxable consumption."

Roxas on Sunday said he was counting on the energy summit called by President Arroyo to tackle his proposal.

The summit will be held January 29 and 31, and February 5 and 7.

Rep. Teodoro Casiño of the party-list group Bayan Muna said government can easily forego revenues from the VAT if only it would stop or at least diminish graft in the Bureau of Internal Revenue and Bureau of Customs.

The BIR reportedly posted a P50 billion to P60 billion shortfall last year and the Customs, P17 billion to P20 billion.

"Kung nagsisipag ang ating mga kolektor, kayang-kayang pagbigyan ang naghihirap na publiko," said Casiño, one of those who fought against the passage of the expanded value-added tax.

Rep. Joel Villanueva (Cibac) said Malacañang was turning a deaf ear on the proposal to suspend VAT.

"Mukhang okay lamang sa Malacañang kahit bigo ang kanilang mga tauhan na kolektahin ang target na buwis. Pero kapag kaginhawaan ng publiko, pasensiyahan muna," he said.

Villanueva said the President should look into the culpability of collection officials because "taxation and meeting government’s targets are vital issues that need to be addressed with dispatch."

Rep. Roilo Golez (Ind., Parañaque) over the weekend said the President should personally evaluate the performance of Finance Sec. Margarito Teves and his subordinates led by BIR Commissioner Lilian Hefti, her deputy for operations Nelson Aspe, and Customs Commissioner Napoleon Morales. – With Wendell Vigilia