Manila - Philippine President Gloria Macapagal Arroyo on Monday rejected appeals for the government to scrap an unpopular sales tax to ease spiraling food and fuel prices.
In her annual state of the nation address in Congress, Arroyo said removing the 12-per cent value-added tax (VAT) would dampen investor confidence, weaken the economy and further hike prices.
"Take away VAT and we strip our people of the means to ride out the world food and energy crisis," she said in her speech, which many had hoped would offer relief for the high prices.
Manila- Philippine President
