PRESIDENT Arroyo’s tough defense of the expanded value-added tax (E-VAT) in her 8th State of the Nation Address is expected. The government’s varied programs on providing popular but band-aid solutions to rising fuel, power and food prices largely depends on it, thus she cannot compromise the future of the country, lest her administration which is facing a hard and uphill battle come national and local elections in 2010.
While the good news is that this fiscal policy was implemented at the time when single-digit inflation rate was recorded prior to the abnormal rise of fuel cost and the looming recession of the US economy. These have indeed helped government shore up the much needed money to finance ongoing programs and projects for the masses.
The bad news is that majority of the people can no longer afford to shell out the 12 percent VAT for basic goods and services. Even the lowly ants gather food during sunny days while taking a break when storms come. One needs not be a degree-holder of economics to know what is out there.
All he or she has to do is check the public markets and ask the stall owners about their day-to-day sales, and most likely he or she will get a curt reply, “Matumal.” Why? Because many Filipino families would rather buy cooked food from their “suking carinderia” to save money and fuel. Same is true with jeepney drivers plying a short distance like here in Singalong.
People would rather take a walk than shell out P8.50, if not argue with the driver to give them senior citizens’ or student’s discount. Thus it would have been more relevant and substantial if she announced that she will immediately convene the Legislative-Executive Committee to study the effects of lowering the 12 percent VAT to a more realistic figure in view of the prevailing economic hardship that the people — whom she profoundly cared for — have been experiencing in the recent past.
All is not lost, however. It is time to listen to the voice of the people and give them hope than totally isolating the Palace and its occupant in an ivory tower.
Rhoniel Enrile Narca, Singalong, Manila, (via e-mail)

13 Feedbacks on "Filipinos deserve a lower E-VAT"
De los Reyes
The suggestion is well taken but removing the e-vat will also remove the means by which GMA sustains the direct financial assistance given to the masa. She is virtually dead politically and if she fails to sustain the needs of the poor even in a small way she then courts the anger of a hungry people that can turn into an angry mob and may lead to an early departure before her term expires in 2010. Her strong defense to keep the e-vat is borne by the fact that she knows she can stop a military coup but not a mob of hungry people. I would think a substitute for the e-vat may be legislated in its place but to remove it completely will spell the abrupt end of GMA.
mamamayang_pinoy
karaptdapat sungalngalin yung ahensya ng gobyerno na kinekwestyon ang survey tungkol sa kung lumala ba ang estado ng pamumuhay sa bansang ito… LUMALA at onti-onting pinapatay ang mamamayan.
lea dizon
I dont see any problem as long as the money goes to ” PROPER ” use.
I have a friend residing in Canada, 40 % of his income goes to taxes but he is happy because according to him , he sees government officials going to jail for stealing, he sees good roads, education health etc are well provided. In short , he sees improvement . Here we see nothing !
Valdemar
E-VAT is the long lost chord of jueteng.
Jang-jang
Sad to say that EVAT is a burden to the low income filipinos but an impact cushion to the country as a whole.
We need VAT to maintain the internal and international economic buoyancy of the Phils.
Most citizens see VAT as only diminishing their daily purchases on needs by shelling out additional VAT to the things they buy.
VAT should be purposed on the things that the country ugently needs. Maybe this is one reason that the Govt cannot properly explain to the people.
As to reducing the EVAT? It may be one of the ways the Govt can do for its citizens to cope with the rising cost of basic needs. Reduction of VAT will be of help to the low income earners
wonderwoman
VAT should be abolish completely. Why would our corrupt government make his people suffer in these times of hardship? We have a corrupt and inefficient government.
First, if our government wants more revenue, it should plug the billions of pesos lost thru corruption. 40% of the national budget is pocketed by corrupt officials, according to Senator Chiz Escudero. I took the road from Leyte to Manila, and I have seen the up and coming blunder being committed by our government. One third of the Highway in Samar province is being demolished for rehabilitation. The old highway was dismally built. There is no solid foundation below the concrete cement, neither are there any iron bars for support. That is why, large blocks of concrete in these national highway just collapse.
Again, all the contractors in that particular highway did was to demolish the old concrete without putting in place large rocks and gravels as foundation to support the heavy vehicles. And the length of the destruction is no pittance, it is more than one hundred kilometers. And I have observe that the it will take not two years, but TEN YEARS, before these project will be finish, at the rate it is being repaired.
This project will cost several billions of pesos.
Second, the Bureau of Internal revenue is another government agency which is riddled with corrupt officials. I for one know someone in our neighbor who is a ‘runner’ of a BIR EXAMINER. Her boss is an ethnic Chinese, who investigates underpayment of Business Tax. My neighbor, an employee of this ethnic Chinese Examiner would go to several establishments that are under investigation and ask for grease money in the amount of several thousand of pesos as a guarantee so that they will not be penalized. You multiply these corrupt BIR EXAMINERS all over the country, and how many business establishment we have, and you can deduct right away that billions of pesos goes to the pocket of the culprits.
Third, the Bureau of Customs. According to INTERNATIONAL MONETARY FUNDS AGENCY, our country has imported two hundred and eighty billions pesos worth of goods and commodities, yet the Bureau of Customs declared that only one hundred and sixty billions pesos worth has been listed. So, what happen to the one hundred ten billions? Some says, the name of FG or First Gentleman, the husband of PGMA, has been drag to this anomaly. They say big time smugglers with connection or protection of FG are behind this smuggling and under declaration.
Take the Bataan Oil Depot; this large and complex storage cost billions of pesos to built, and who in his crazy mind would built such huge investment for the purpose of smuggling, if the investors were not assured of a guaranteed return and absolute protection. They need the blessing of Malacanang. And here is where all smuggling flourish, all fingers points to Malacanang.
From a humble salt, vegetables, machineries, cars, computers, fuel and oil, fake brands of goods of all sort, you name it, they have it.
We have imported eight X ray machine that can see thru a containers and determine its content. Yet smuggling is rampant. Why? You just have to think that all appointees in the Bureau of Customs are directly hired from Malacanang. So, the smuggled goods are there, it pass thru the X ray (latest model), unfortunately, the personnel of Customs must be closing her/his eyes, upon instruction of Malacanang, when ever highly dutiable goods pass thru the X ray machine. Mind you, our First Gentleman inspected these machines somewhere in China before it was shipped here. And adding insult to injury, our government ordered a more advance model and in such number, we have shame LOS ANGELES, U.S.A. Customs; they only ordered two lesser model X ray machine while we ordered EIGHT advance model!
Gobyerno nating mga ethnic Chinese, mayabang! Hambog! Saan mo illalagay ang sobrang X ray Machines? These stupid undertaking committed by a stupid government has cost the ethnic Filipino people billions lost.
The stupid government does not want to abolish the EVAT because that revenue is a fertile source of corruption and nothing more.
Don’t ever be misled by the SONA. Even without EVAT, basic services for the people can still be delivered if that 40% of the budget goes for our peoples benefit instead of the pocket of these corrupt government officials. And that 40% is no peanuts; it is about four hundred eighty billion pesos (Php 480,000,000.00)! These is according to Senator Chiz Escudero.
Fourth, about the SONA. PGMA has the temerity of including ‘Self Sufficiency in food production’ as part of her speech. I have heard this ‘Self Sufficiency in food production’ topic in her SONA way back 2002. Why, where did all these billions of pesos in her past seven years went? She has been using old-fashioned slogans such as self sufficiency, farm to market roads, building schools, educations, basic services, etc. Just do it!
Fifth. In other countries such as United States, India, etc, when ever their economy is bearish, their government tends to give tax shelter, tax rebate, and other incentives, just to make their citizen coup with hard times. Here, our stupid government over-taxes its people. It’s like our government has retrogress into a feudal form of government, whereby regardless of the peasants economic situation, the landlords keeps imposing backbreaking tax.
Six. Our Supreme Court has gravely committed the mistake of putting exorbitant fees and so many requirements for one who seeks legal justice. Ten years ago, filing fees, and other incidental expenses were only minimal. Why bother imposing high fees when you have your own budget, more than you can consume. Why, for God shake, would you require a complainant eighty sets of affidavits, when before there were only five? Are your lower courts such as MTC engages on junk shops? Why so many extra copies? With the ages of computerization, why so many copies? Are you too just as corrupt and stupid as your Chief Executive?
With Php 100,000 law suit, I am charge P24,000 as filing fee because of several checks. I am the complainant, yet I feel as though the court has turned the table and punish those who file a complaint. I paid my lawyer Php 20,000 as acceptance fee, besides the ‘per appearance’ of Php 2,500; where will I end up. I think, you senile judges in the Supreme Court need your head to be check up. Sa halip na tulungan ninyo ang nagrereklamo, pinarusahan pa ninyo! Mukhang pera! Lahat na lang ng ‘Motions’ sa corte, dati, walang bayad, ngayon, sobra. Para kayong MGA MMDA.
Noon, ten years bago ma solve ang simpleng BP #22, ngayon, isang taon o mahigit bago mo matangap ang RESOLUTION ng fiscal (MTC, Quezon City). Para ano pa ang isang damukal na feels? Kung sa CA, nagkabulgaran na, siguro, tutuo ang ten million na lagay sa isang babaeing magirado sa Supreme Court. Nagmamalinis pa kayo!
Mga EVAT!
Jang-jang
Wondergirl,
Asking Chiz Escudero about the govt-back EVAT is just like asking Eid Kabalu, an MILF spokesperson, on the actions of the raiding MILF members in North Cotabato.
There are no two sides of the coin with these guys but only one.
You should have believe more on the sides of the businessmen, economist and bankers which are more knowledgeable on the matter and not with an opposition politician like Escudero
Escudero is a politican and he will have say what will put his political party, backers AND HIMSELF PRIMARILY to the good spot in order to further himself and his group on the political ambitions or positions in the future.
That makes Escudero a partisan person whose only drive is to uplift himself and his group thus he’s not the credible person to ask or believe to on the matter of taxation such as the EVAT.
Bart
EVAT should not only be reduce but to be scrapped! i have the follwoing suggestions as an alternative to EVAT
1. Raise the taxes of church own schools like ATENEO, LA SALLE, UST and others who pays a little but increases tuition fees like a burning fire. They should be accounted for.
2. Raise the Taxes of Tobacco and alcohol. Smoking is the major cause of LUNG CANCER, and ALCOHOL deteriotes the body and mind, so it is logical that these are not needs but are vices to be limited to a certain point.
3. BIR should collect properly and go after those big fishes like lucio tan, (who doesnt even know how to speak english and tagalog properly).
On the other hand, if EVAT cannot be scrapped due to the stupity of our current government including those in the opposition, let us consider the total removal of EVAT for FOOD and MEDICINES, which are considered as “NEEDS” to help our kababayans cope up with their lives. Many of those affected by EVAT are the POOR people in which most of them could only manage to eat once or if lucky twice a day.
On a side note:
We should penalized the tax evaders and jail them for reclusion perpertua. Death penalty to Rapist, killers and corrupt public offficals. Nah, with the tolerance of our society, these wont happen, but then again, i think it would make he rapist , killers and corrupt sleepness at nights….
To all have a nice day!
Spooky
there is nothing wrong with taxation as long as it is used for the welfare of all and not a few.
There should be a complete review and study of the EVAT. They should change the list of those items that are subjected to taxation..
Bart, your comments are funny but they make sense. Alcohol and tobacco should be heavily tax to minimize the comsumption its harmful effects.
wonderwoamn
Tax! Tax! And some more tax! This is the slogan of our government. Make the people suffer no matter what.
These back breaking taxes in all stratum of our life are highly irregular if not unjust. Many Filipino-Americans has returned to our country because of hardships they have encountered in America, yet by coming here, it’s like “being thrown from frying pan into the fire.” There is no hope here.
In spite of the wide spread destitution our people are experiencing in our native land, our government still has the temerity of imposing heavy tax burden.
Many of our Congressmen are no longer representing the will of its people. They belong to the well-to-do. They are oligarch or a small group of people who together govern a nation which often rules for their own benefit. They plunder what remains to our meager financial resources. All they deliver are empty rhetoric’s that does not contribute to its people’s welfare. They are nothing but vampires, beast, and plunderer. With so much compensation they receive, they still would seek to ransack our treasury.
They aggrandize themselves with so many privileges. They act as though they people owe to serve them, and not the other way around.
Our government is ruled by bunch of thieves, if not an ‘evil empire.’ And majority are ethnic Chinese.
wonderwoman
Jang-jang
You missed the point regarding EVAT on what I was pointing at. Please refrain from pin pointing or capitalizing on what Chiz Escodero said. After explaining my objections to EVAT, I do not see how you could have concentrated on the statement of Chiz Escodero. With or without his statement, my conviction to this objectionable EVAT still holds. There are other sources of revenue if only our corrupt agencies such as BIR, CUSTOMS, and extravagant EXECUTIVE and LEGISLATIVE branch are honest.
Jang-jang
I know the feeling ms wonderwoman, I even dont have to read the whole of your post as your disgust on too much tax imposed on the Filipinos is evident.
True, we have assorted taxes but we dont see better results of what taxpayers are contributing to the national coffers.
Innefficient Govt people contributes highly to these problems and perhaps they just care about collecting and the figures they see on the board and not thinking or planning of major welfare benefiting the majority.
But taxes such as EVAT needs to be collected as this will be the blood that runs in the veins if we ever want to call the Phils a country. On the over-all, the country will not survive without these taxes.
EVAT is a bitter pill to swallow to many but it is one of the taxes that puts the Phils on the global map, we are recognized as the Philippines with systems and means to be capable to the eyes of the Int’l community.
kurasmag
I agree about jangjang statement that evat is the blood of our country. If you are an economist you will see that there is an improvement of our economy in a sense of our debt in other country is lesser than before.
I know that there’s a lot of corrupt government official, but for now we can’t do about it, all we have to do now is to cooperate in a sense that everybody will benefits. As you can see, most of the people now are complaining about our economic stability, high prices of necessity, goods and so on. But why is it that majority of the people only know is to complain? We can help to improve our economic stability by means of cooperation and changes of our attitude towards the situation that we are encountering now.
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