Palace on VAT: We only implement the law

The movie and entertainment community cannot expect any help from Malacañang regarding their protest to the implementation of the 10 percent value-added tax (VAT), Presidential Spokesman Ignacio Bunye said yesterday.

Bunye pointed out the VAT law has been in effect since 1994 but its implementation on members of the entertainment industry and professionals has been repeatedly deferred because of protests.

"If they (movie stars and professionals) want something to delay the collection, I think the proper venue would be the House of Representatives," Bunye said. "They were even wrong in staging protests before the Senate because this is a revenue measure that emanates from the House."

Bunye stressed Malacañang, being in the executive branch of the government, is merely implementing the law emanating from the legislative branch. "They (movie stars and professionals) also can’t go to the Palace," he said.

Protesters had claimed only ten percent of those who work in the entertainment industry are superstars who earn millions of pesos per project.

They said most of those who will be subjected to the new tax scheme are the bit players and stuntmen who are only paid a measly sum per film.

Armed with late-model cellular phones and clad in the latest designer wear, the country’s superstars marched to the Senate on Monday protesting what they called "an anti-poor" measure on their talent fees.

The movie stars and their film directors were later joined by a group of doctors and some professional basketball players in their march to the Senate.

Medical practitioners claimed their profession cannot be compared to a regular commerce or trade to be subjected to a ten percent VAT.

"Health services are not trade or commerce. It’s more of a public service," said Dr. Cecil Tady, president of the Philippine College of Physicians.

According to Tady, many doctors will be forced to pass the additional cost to their patients if the government insist in imposing the ten percent VAT.

If a doctor charges P100 consultation fee, Tady said the increase will likely be 10 percent as provided in the new tax scheme.

Opposition Sen. Teresa Aquino-Oreta said the government should now refocus its tax collection campaign.

In a statement, Oreta said imposition of the ten percent VAT would only lead to more tax losses due to its various loopholes. – with Perseus Echeminada