Manila new tax law confuses consumers<\/p>\n
MANILA (UPI): Confusion swept across the Philippines yesterday
\nas the government implemented an expanded value added tax law
\nthat hikes to 10 percent levy on a wide range of service
\nindustries.<\/p>\n
Consumers coming off the holiday hiatus were surprised to find
\nthat shops and markets have jacked up prices of basic commodities
\nsuch as meat, rice and sugar as the law took effect Monday.<\/p>\n
\"Why did the prices go up suddenly?\" a lady consumer asked.
\n\"If the government wants to raise taxes does it mean we should
\npay more too?\"<\/p>\n
Bureau of Internal Revenue director Liwayway Vinzons-Chato
\nsaid prices of commodities and services covered under the E-Vat
\nshould not rise more than 10 percent.<\/p>\n
Chato urged consumers to be vigilant and report establishments
\ntaking advantage of the law, saying the bureau has the power to
\nclose businesses not following the E-Vat.<\/p>\n
She said the bureau has set up hotlines to help consumers and
\neven business establishment understand the new law.<\/p>\n
The E-Vat law was signed in 1994, but its implementation was
\ndelayed when the Supreme Court issued a restraining order after
\nseveral members of the Congress questioned its constitutionality.<\/p>\n
In November 1995, the high court lifted the order, paving the
\nway for the law's implementation which was expected to generate
\nsome 7.9 billion pesos (US$301.52 million) in revenues this year.<\/p>\n
The E-Vat covers most service sectors such as
\ntelecommunications, restaurants, transportation, publications and
\nreal estate. Exempted from the law are agricultural products,
\nfertilizers and basic consumer commodities such as meat and
\nvegetables.<\/p>\n
Rep. Wigberto Tanada said he felt \"saddened\" that the
\ngovernment implemented the law despite opposition from several
\nsectors, saying \"it will bring more difficulties to the poor.\"
\n\"This is anti-poor,\" he said. \"We do not need this law.\"<\/p>\n
Tanada warned it would be difficult for the government to
\nmonitor businesses that would unreasonably raise prices, adding
\nit could even fuel inflation this year.<\/p>\n
But economic analysts played down the possible negative
\neffects of the new tax law, saying the Philippines would benefit
\nfrom a \"standardized taxation.\"<\/p>\n
Yuri Alliado, an investment analyst at Philippine Asia
\nEquities Securities, said a \"widening of the tax base\" would
\nprove beneficial to the country in the near future as more and
\nmore firms set up shops.<\/p>\n
\"Objectively this is not really inflationary,\" Alliado said.
\n\"What is wrong with expanding (taxation) to certain industries?
\nTax is only 10 percent and not in any way going to affect
\noperations.\"<\/p>\n
But he said the government needs to launch more information
\ncampaigns, as negative sentiments over three successive months of
\ndouble-digit inflation beginning in September has left sour
\nmarks.<\/p>\n
\"There is apprehension at the moment,\" he said. \"People just
\ndo not realize the good certain government moves bring as the
\nwhole market is made up of expectations.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/manila-new-tax-law-confuses-consumers-1447893297",
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