No to New 3%VAT Increase

            Better late than never. This column is definitely registering very strong resistance against the new proposal of 3% VAT increase by the present government. The approval would have been passed were it not for pressures exerted by diverse  concerned sectors reconsidering such additional burden to general lowly paid consumers. Great at least, it was averted for now. But for how long given penchant of the powers-that-be in forcing issue hook, line and sinker at the expense  of general consuming public.

            It’s approval would have led to multiple whammy for them had the 3% new VAT increase was approved.  But no  thanks that such prohibitive increase was mulled right after LBP Exec top honcho Gary Teves proposed for possible adoption to incoming administration. Why all this plan in haste when we have yet to elect set of new elected officers next month!

First, it’s good for the country to recover up its multi-billion peso deficit as additional income, they say. No question about it. True. But who is benefiting the most if not the capitalists and the collateral damage filtering downward aggravating the   sufferings already experienced by the  most vulnerable sector of society, the poor ones.

Second, the increase in VAT is necessary to provide automatic additional income to  the government. Again, very noble and convincing ground for possible approval of the  proposed VAT increase.

Now, let’s have free wheeling discussion here. Definitely, the proposal is plausible and  probably among the economist, has long been overdued.  That as it specially behooved upon us being tax payers not just to support but most importantly, participate in helping the government’s coffer full  by religiously paying our taxes to the state. Don’t do it and it would  run dry anemic and bleeding to death. This is  where the problem lies. Agree? Of course, you do! For if only concerned collecting agencies like BIR, Customs and the rest are doing their job, there would have been no need of adding burden to general public.  Come to think of it forcing the issue not out of their own making.  Why implicate them in the mess, not out of their own doing.  There’s huge tarpaulins I’ve seen somewhere sending didactic meaning for voters: Vote only for candidates who are paying their taxes to the government! Fine.  But who are they.  BIR people knows better their names and should have done their job not leaving the voters left in the cold who are they referring too.  Why not give the names to media. That’s institutional corruption hiding those who are not paying and in turn allowing them to be voted upon in office. What’s the guarantee anyway that these crooks, dishonest wannabes would not redo the same corruption when they’re already elected in their office.

You wonder why  Taiwan is such a very rich country. One reason is that they are paying their taxes with all honesty. You’re not even allowed to board a plane leaving the country, once you owe tax to their government. They’re so rich they have relegated other tiger economies in the Region like Japan, South Korea and other countries as early as 1986 as featured in  Far Eastern Economic Review. In fact, they’re so rich that even how much their government employee spend away their salaries, roughly 45% is still left from their payslip for their personal and family’s consumption. I know for I was once  there and for two months studying   agrarian reform and rural development at Land Reform and Training Institute  in Taipei during 54^th Regular Session bringing other  23 participants from other countries. The irony of it all,  Taiwan is such very small country,  smaller than Mindanao in land size. And yet look how far they have reached. Ours of course is more promising than Taiwan and blessed with all those resources.  Only that concerned agencies delegated to do the job of collection are doing the other way around resulting to sorry mess of our gov’t. coffers. Honest to goodness collection? Tell it to the marines.

Third, such  3% increase is within Asean limit, they said. Ergo, why not join the fray instead and than wait or defer the suffering while there is time to do it today. Other Asean countries have been doing it and are now enjoying the fruits of their labor  anyway

This is where the biggest problem lies. Note how far these tiger economies have been there leaving the Philippines in the background wallowing in the quagmire of poverty. The playing field is not definitely fair now as drumbeated by some economists.  In fact, there’s one page ad in other paper finger-pointing and blaming Mar Roxas for the infamous passage of !2% VAT already prescribing death sentence to marginalized sectors of society.

We used to be ahead many decades past over other  Asean countries requiring their services as domestic helpers. But look how far they have  overtook us enjoying the services of our professionals as their domestic helpers instead Now they would like to punish us all the more with additional burden of VAT increase. Sick joke. No thanks that Malacanang Deputy Spokesperson Gary Olivar opted recommending it  for thorough study or it’s approval would have caused more restlessness and mayhem among affected parties directly suffering the already prohibitive 13% increase  already imposed on basic commodities.