Filipinos deserve a lower E-VAT
- Feedback, Raul Gonzalez -
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.
