Only Death and Taxes

Published by the Visayan Daily Star Publications, Inc.

NINFA R. LEONARDIA Editor-in-Chief & President

CARLA P. GOMEZ Managing Editor ANTONIETA B. LOPEZ Business Editor ODETTE MONTELIBANO Desk Editor MARY ANN BARCELONA Advertising Coordinator RENE GENOVE Bureau Chief, Dumaguete

ANDRES R. LEONARDIA Managing Director

The imposition of the increased value-added tax starts today, February 1, 2006. To many Filipinos, this is another Day of Infamy, when they will be made to bite the bullet in order to make up for the failings of this and past administrations that have caused their country to sink in debts it no longer has the capacity to pay.

There are reports that the signal to impose the added two percent to the already unbearable burden of the ten percent previously required, has to come from the President, and that she might still come down to earth and listen to the cries of her people, perhaps, by postponing its implementation. Perhaps. But we cannot be sure of that, considering how deadbeat she and her supporters in Congress had been on the passage of the bill proposing it.

Meanwhile, labor groups are trying to soften the blow on their members by calling for more tax exemptions in order that their sector would survive the impact of the dreaded E-VAT. Ironically, that might be seen to defeat the purpose of the law, which is to increase government revenues for its survival.

Even if the President has repeatedly tried to justify the additional tax as a necessity, and as a source for funds to improve the delivery of social services, few are like to accept that, aware that reports from previous years have indicated that the E-VAT would not have been necessary had the collection of taxes been more through, and that those who had paid, had done so honestly, giving the government what was due to it. As it is, anybody can see that many businesses, industries, and even professionals have not been paying the correct amount due from them or, worse, not paying at all.

Today we cross our fingers and hope that the imposition of the Expanded Value Added Tax will be postponed. But even if it is, there is little hope for us. As the old saying goes, "There are only two things that are sure in this world, and they are Death and Taxes."*