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The impact of R-VAT
By Renee F. De Guzman

San Fernando City, La Union (31 January 2006) -- The values of simplicity and frugality become handy to Ilocanos as the nation braces up for the implementation of the Reformed Value Added Tax (R-VAT) law.

Effective February 1st the value added tax will be raised from the present rate of 10 percent to 12 percent as confirmed by the Department of Finance.

The implementation of the 12 percent VAT is in pursuance of the government's short-term goal of balancing the budget and raising more funds for development.

E-VAT or R-VAT is a consumption tax and will spare no one as it will affect everybody, whether rich or poor it is one bitter bill for all Filipinos to swallow for the good of the country.
As Secretary Rene Velasco of the Philippine Information Agency said, the R-VAT law necessitates a short-term sacrifice for a long lasting reward in terms of more jobs, livelihood opportunities, better social services, more infrastructures and lesser debt.

To cushion the impact of the E-VAT especially among the poor and the marginalized, the government is adopting mitigating measures or safety nets such as; the removal of excise tax on oil and energy, fuel discounts for PUJs, close monitoring of prices of prime commodities, strict implementation of fare discounts to students and senior citizens among others.

In a way, the expanded tax law will not only reform the taxation system but even the consumers as it will have positive impact on both the country and on the personal lifestyle and values of the Filipinos especially the young ones.

Under the E-VAT, the more one buys the more is taxed. Hence, consumers will then learn to become practical and wise buyers and users which will redown to less wastages of goods and services, the offshoot of which, could be translated to more savings. Thus, many Filipinos will learn to live the Ilocanos' life; simple, practical, and frugal yet productive.

Initially, like any change, the new tax system as expected will create all sorts of resistance. However, people will eventually realize that the fruits of their little sacrifice will bear good and lasting consequences for the Filipino nation and for the Filipino as a consumer. (PIA Ilocos)

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