Making sense of the RVAT

So far it's been the meek and soft-spoken Cardinal Vidal who is making a lot of sense these days now that the RVAT (reformed value added tax) or EVAT has come to its full force and effect.

I can only surmise that the good Cardinal wants us to move on and finally put to rest the grumbling and bickering to the dustbins. We have had enough of sad stories already and I would like to think that the Cardinal doesn't want us to live and believe that we are going to die with this new tax law.

Budget deficit, soaring gas prices, low wages and so forth - we are no strangers to all these events. We have gone through all the worst things that you can imagine from Marcos to this present administration.

In short, we've been through hell before. And yet look at us - we may be dying or stricken with the most dreaded disease but we're not losing faith.

Like most of you, I do agree that the RVAT only worsens the sorry state of the ordinary Filipino. That at least for now. The new taxes may get us half-dead for awhile but this is our best remedy in these critical times. We have to do whatever it takes no matter what the cost is to preserve our survival.

We need to respond, than resist, the offer of cure. And we must now learn to give up the things we like in order to hasten our recovery.

Besides, tell me of anyone who likes taxes or the least savors the smell of every note he gives to the government. Even Jesus' himself acknowledged to give to Caesar whatever we owe him. In this life, it is taxes and death that are the most certain to happen during our lifetime anyway.

I'd like to say that we must give this new law a chance to prove its worth. And speaking of which, it is very encouraging to see the positive signs right away. For one, the peso has regained back its strength against the greenback while the stock market is on a continued uptick.

Of course these signs will not ripple off right away to the general population. What can be expected in the short term is a stable fiscal position where government can already allocate properly its resources to the much needed basic services after the second quarter of next year.

With the government's streamlining program, we will also expect a much leaner bureaucracy - which means, less overheads, less corruption and better accountability.

Going back to what Cardinal Vidal was suggesting, it really makes sense to be "frugal." This is the best way to insulate a bit the impact of EVAT.

We must remember that EVAT is a tax based on consumption. The less you consume the lesser you get to pay for it.

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I would like to take this opportunity to greet my beautiful wife Malou a very happy birthday. She will turn thirty four tomorrow, November 5. Since the EVAT is here to stay, we have decided to change the venue of our dinner date instead in a cozy restaurant to our kids' favorite fastfood joint.

Again Happy Birthday, Malou. May you have more happy days to come. We love you.

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