Letter to the Editor - More on the Reformed Value Added Tax

The Expanded Value Added Tax (EVAT) law gained notoriety in 1994 among taxpayers when the Republic Act No. 7716 otherwise known as the Expanded Value Added Tax law was upheld by the Supreme Court by a vote of nine to six. It was a landmark decision by the Supreme Court considering the critical issues involved in the legislative aspect of the law.

Since then, the people of the Philippines particularly the caused-oriented groups nurtured a pandemic mental anguish. They are ready to march on the streets on any taxes imposed by the government. The government is in a no-win situation; damn if you do, damn if you don't. Bad roads and bridges, no classrooms - the government is to blame.

The controversy on the Reformed Value Added Tax (RVAT) law could have not risen if the two percent tax was not added to the EVAT.

The people of the Philippines were hardly able to carry the 10 percent EVAT from the year it was implemented up to the present. How much more the two percent taxes?

The two percent tax should have not been added to 10 percent EVAT to make it the 12 percent RVAT. There was already anguish on the EVAT among the taxpayers especially the caused-oriented groups.

The BIR should have looked for another name for the two percent tax added on goods and services.

The 12 percent RVAT could mislead the ordinary man on the streets that he is paying too much on taxes.

There was even a man live on television on one of the talk shows claiming he was billed of 21 percent on EVAT. How could that be?

Salcedo C. Gines
Bliss, Labangon
Cebu City