Thursday, October 23, 2008

oil matters

Source: http://http//www.mb.com.ph/BSNS20081019138377.html

I agree with what the business leaders are proposing to the government. I do think that by cutting down the taxes on fuel and electricity, the Philippines would gain more foreign investors. And at the same time the country wouldn't have a hard time coping up with the world's economic problem. Presently, the United States is experiencing an economic crisis, several businesses have already collapsed, and thus many businesses in the United States, and Europe are having a hard time coping up with the economic breakdown. In order for these struggling businesses to survive, they would need to find ways to endure the crisis. And one way is to move their companies to another location, or by outsourcing. And that's where the country comes in. If our government officials decides to lower down the taxes on fuel and electricity,then foreign investors would most likely be attracted to invest here. An example would be the growth of call centers here in the country. Call centers are affluent here not only because the cost of doing business here is cheap, but because Filipinos have good communication skills which is a requirement for call-center jobs. So if the country lowers down taxes on fuel and electricity then more call-center companies and other industries would invest here in the country, and this would also mean more jobs for Filipinos, and economic growth for the country.

However because of the shortage of oil today, the country is having a hard time implementing a lower tax rate for fuel. So I also do agree with what the business leaders are asking, that the Philippines should try to invest in oil exploration. If by chance the country finds oil here, then we wouldn't have to depend much on other countries, and likewise maybe other countries may depend on us.

The country has abundant natural resources, the problem is that the government doesn't have the capabilities of developing it. That for me is the reason why the country is still a third world country.

4 comments:

littletwixstar said...

Before anything else, I know that the government gets its fund for public services and infrastructures from our taxes but really now, if we can see where our money goes would we really mind that much if we pay higher taxes? Taxes play a huge part in the development of our country---that is, if the taxes are being used efficiently.

I agree that the government should lower the taxes of oil and electricity. But if we really want to attract investors here in our country, we should lower our interest rates and we should remove the minimum wage.

karisse said...

Basically, the reason why the prices of goods and fares in transportation are high is because of high oil prices. Taxes really makes our commodities have high prices, and this is bad for our economy right now, especially since the buying power of the people have lessened a lot. Imagine, your 1ooo Pesos couldn't even get your car have a full tank on a gasoline station. Right now, i think the best solution is still to lower down taxes, after all, we don't see any improvements in our government.

If the government wants to impose high taxes, they better show the people where the money from taxes were going. ASide from that, it is good that there are foreign investors here in our country, but let's not allow those foreigners to take control of everything that we own.

watermelon said...

Yes, the high cost of electricity and fuel is really pressuring the competitiveness of the business here in the Philippines. Surely, government wants to lower these prices, together with businessmen and consuming public, but HOW?
With oil deregulation, free trade and open market system, government has absolutely no power to dictate whatsoever sentiments to the oil and electricity industry. We often see on tv that government officers asking the oil company to explain and justify their prices, i believe these are only "pampapogi" and "pampaimpress" tactics of the government to win the approval of the people. I hope government should now shut up! stop saying lots of things, we want concrete actions!
I disagree that there is oil shortage now in the world, it is just the Oil exporting countries gathering together to restrict supply, so to increase the prices to satisfy greediness of these oil rich country. I also disagree that the Philippines should go into oil exploration because the capital required is just so huge that the country can't afford. Adding the uncertainty and risk involved in oil exploration, i highly doubt that the country will recover its investment in case the Philippines engages oil exploration.

blogger said...

Regarding on what you said about the Philippines being a third world country up to now, for me aside from what you believe on why we are stuck in being one is that because of our government. They are the one who can't change on what they've been doing~corruption and cheating.

For the investors, I believe what you said was right. They should really start on decreasing the prices of our basic needs like electricity so that it will attract big investors to invest in our country.