MANILA, Jan. 27(Xinhuanet)-- Philippine President Gloria Macapagal-Arroyo is upbeat that the passage of the bill on value added tax(VAT) will bring the economy"on a roll" and reassures the public that they will be shielded from the impact of the additional VAT on goods and services.

"The economy is on a roll and we shall continue to ensure that the most margina l sectors are shielded from short term adversitiesby cushioning prices where the most telling social impact is expected," Arroyo said in a statement Thursday.

Arroyo commended the House of Representatives for heeding her request and passing the VAT bill on third reading early Thursday despite a walkout by anti-VAT congressmen.

"Once more, I thank the House of Representatives for taking thelead in putting our fiscal house in order," Arroyo said.

"This is an act of valiant civic duty that builds a better future to all Filipinos by growing the economy to create more jobsand push our 10 point pro poor agenda," she added.

Under the bill, the VAT on goods of services will be increased from 10 percent to 12 percent.

The Senate is conducting public hearings on its version of the measure.

Congressmen said the proposed increase in VAT was expected to generate an additional 35 billion pesos(625 million US dollars) for the government.