RECOMMENDATIONS TO GAIN POPULARITY

a. There is a need to consider amending the E-VAT by exempting certain transactions where there is a major impact on the consumers. Particularly, sales of low-cost housing and rentals of apartments or residential buildings generally to lower and middle class families, who have no output VAT against which they can credit the VAT on the rentals passed on to them by their landlords, should be considered as exempt.

b. Government should implement a much more extensive and continuous public educational E-VAT program, using specific graphic examples in the print media.

The Philippine Chamber of Food Manufacturers, Inc., Cosmetic Toiletry Fragrance Association of the Philippines, Inc., Effective Consumer Response Philippines and the Soap and Detergent Association of the Philippines, Inc., together asks for the amendment of the EVAT law saying that the costs of this tax measure out weighs its benefits and that some provisions like Section 110 (B) providing for input VAT limitation equivalent to 70% of output VAT (“70% cap”), Section 110 (A) (2) providing for amortization of input VAT on capital assets for 60 months if aggregate acquisition cost is more than P1 Million, and Section 27 (A) providing for the increase in the corporate income tax from 32% to 35% saying that these sections are deterrent at least if not destructive to businesses in the country.

The Freedom from Debt Coalition (FDC) Philippines is known for being a nationwide multi-sectoral coalition which makes use of advocacy work to be able to achieve a common framework and agenda for economic development. The members of this coalition are concerned individuals and different organizations that want to work for amend policies, programs, structures and relations. According to their platform, they are concerned with the following: (1) human development (2) equity, economic rights, economic justice (2) democratizing the economy (4) sustainable economy (5) economic growth (6) role the state must play in the economy (7) economic sovereignity and national self-reliance and (8) global economic realations. The coalition is against the EVAT law and still continue to condemn the decision of the Supreme Court to push through with this. Ted Aldwin Ong, a member of FDC, stated that “Electricity rates will increase by not less than 50- centavos per kilowatt-hour due to EVAT. Worst, almost 80% of the so-called revenues to be generated from it will not only go debt-servicing of which are illegitimate and from onerous transactions”.

Anakbayan is a national democratic comprehensive organization of the youth masses that brings together young workers and students that are concerned with the country and how it is being exploited and abused by those that are in power. This organization believes that the youth has an important role in society and this implies that they have a right to express their opinions on the issues our country is experiencing. Eleanor de Guzman, their national chairperson, considers that the tuition fees would increase not only due to the EVAT but also because of some school owners and administrations that would likely impose unnecessary miscellaneous fees in private schools.

Another well-known organization is the Anakpawis which is a party that gives voice to marginalized workers of society that aspire to change the political system so that it would work for the interest of all Filipinos and not just the political elite. Anakpawis representative Crispin Beltran warned the government that due to the implementation of the EVAT, there would be a sharp rise in the current levels of social unrest. He believes that a lot of people would react negatively towards this decision of the government to push through with the implementation.

In a press conference in Intramuros, Manila Archbishop Gaudencio Rosales said that the approval of the EVAT would bring about further hardships for the poor. The Supreme Court should have given consideration to the needs of the poor. He noted that the government might need money to pay for the debts of the country but the poor’s needs are more and so the government needs to start with rehabilitating these people.

In a democratic country like the Philippines, the citizens are the most important part of the nation because they are the ones who influence the decisions of the government. When the EVAT law was implemented, there were lots of objections and criticisms from the Filipino people. There were striking reactions from three individuals in the Philippine government forum online:

“If the government really need to raise revenues, at least it should be wise enough to spare the 10% vat and leave it at that. The long term effect of this tax would make the Philippines very uncompetitive with its neighbors with respect to foreign investments and would further encourage local businessmen to try to evade taxes the more. If the President could recall this tax measure and put it back to 10%, I believe all these rallies will have no adverse effect to her government because many silent supporters would continue to support her. But once this 2% increase of tax is implemented, I believe the Philippines will go down the drain even further. There would be a slow but continuous flight of capital especially from foreign business and more corruption on the side of local businessmen. Add to that the possibility that she would be unseated thru mob rule. Maybe the government would do well if it impose tax on gasoline incrementally like 1% tax every 2-3 months until it reaches its goal of 10%.

Let us be efficient and let do with 10%. More than that is inefficiency already. We don't want a Philippines that is inefficient forever. Let's help build this country and not slowly destroy it thru inefficiency. If this 10% vat is just implemented properly like letting every business pay its dues, the government would do well. Tax evaders multiply when they see that other businesses escape tax. On the other hand, they are encouraged to pay correctly if they see the government is serious about it and collect from everybody.”

“I would gladly pay E-VAT (regardless of how many percent ) when (1) We are NOT 107th Most Corrupt Country in the world...(being in the 50th below or lower is reasonable..)We should aim for the top 10 least corrupt. (2) We see the government anti-corruption campaign is VERY sincere. (3) We see the government doing it's part on "pagtitipid" - Bakit puro SUV at Luxury cars ang gamit ng mga Gov officials (4) We see the taxes being used to build infrastructure to support our economy (5) BASIC Services to the people are adequate and excellent (transportation, education, crime fighting , etc.) Unless people see and feel these BASIC government services without or at very minimal corruption, it would be VERY difficult to "swallow" this bitter pill E-VAT, that the useless lawmakers and government officials are ramming on our throats!”

“I think EVAT should not be implemented because it only makes us poor people suffer. It's okay IF and only if we are guaranteed that these thing will come back to us instead I'm sure 60% or more of the money collected from these taxes go to the government officials for their own personal good...I SAY DOWN WITH EVAT...”

From the reactions of the people, we can see that a great majority of them is against the EVAT law because of the implications it would give the citizens. The tax is said to be for the political interests of those in power because they are the ones who would be making use of this money, especially the corrupt ones. With the reactions of the citizens, we could see that there is no sense of trust on the government mainly because it is corrupt and underhanded by the officials that run it.