PRESIDENT Arroyo yesterday ordered the use of the share of the national government in the Malampaya natural gas operations and the coconut levy funds to provide relief to the poor, including the coconut farmers, in the face of rising prices of oil and basic commodities.

Arroyo issued the directive as she turned down proposals of Oil Price Watch head Raul Concepcion to temporarily reduce the expanded value added tax imposed on diesel products from 12 percent to 6 percent.

Concepcion, during the National Price Coordinating Council and National Economic Development Authority-Cabinet Group meeting, said the proposed reduction aims to help cushion the impact of rising prices on the poor.

Finance Secretary Margarito Teves reported during the meeting that a 6 percent reduction of the EVAT on petroleum products would mean a loss of P4.3 billion per quarter.

Press Secretary Ignacio Bunye said Arroyo in effect ordered finance officials to "just collect that (6 percent EVAT) and then give the equivalent, the 6 percent equivalent, in terms of subsidy to targeted clients."

"In other words, it’s a polite turn down. Kasi pag nag-reduce ka ng EVAT, sasabihin ng mga investors dito, you’re not serious about your fiscal reforms, urong-sulong kayo. But the effect, the objective of being able to help the identified clients will still be achieved using this mode," Bunye said.

Bunye said the coco levy funds and the royalties from Malampaya were identified as "readily available sources" to fund the aid that would be extended to the targeted beneficiaries from among poorest regions.

He said no figures are available on how much is available from the coco levy fund, but at least P3 billion is available from Malampaya.