Tuesday, August 5, 2008

Lessen taxes, not remove.

Yesterday while I was watching the morning news, there was this interview with a speaker from Petron about the, of course, never ending gas price increase. As she explained, I don't know if she was just a good speaker or she was really reasonable. I actually at some point, believed what she said.

She explained that, major oil players are not actually losing money. In total Petron just get around 2 Billion profit per year and that equates to around 20% of the total sales. I forgot the total sales but my estimate would be around 10 Billion.

The diesel price, should actually be more expensive than gas. Since they do not want those who utilizes gas to suffer, they just try to balance it out.

She also added that, oil deregulation law was much better because their profits was assured, unlike now.

She wasn't able to answer the tax question straight though. All she gave was safe answers.

For me, tax should not be removed but, should be lessened. If you remove the taxes imposed, everybody will suffer.

This is my thought: Rather than letting everyone suffer by imposing high taxes or no tax schemes, why not even things out a bit by lessening the tax charges since when the middle class gets a good earning, it would be able to help the lower class by adding jobs.

That is the natural cycle not only in the Philippines but, everywhere else.