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Wednesday, November 02, 2005
Nalzaro: Let’s tighten our belts
By Bobby Nalzaro
Even on the first day of the implementation of the Reformed Value-Added Tax (RVAT) yesterday, the consuming public already felt its impact.
Prices of petroleum products suddenly shot up at an average of P2 per liter.
This prompted the aviation and maritime industries to immediately adjust their fare. In due time, expect increases in the prices of basic commodities and the sudden jump in power rates. This is because fuel price is the barometer of the prices of basic commodities.
The implementation of RVAT will also affect other services. The next time you visit a doctor for consultation, you will be shocked to know the imposed professional fee. Medical and legal fees are no longer exempted from the RVAT law.
And this is just for now. As days move on, we will continue to feel the burden and continue to carry the cross of economic hardship. This as long as the government continues to implement the RVAT.
Manufacturers and producers, however, are more fortunate because they can pass the tax burden to ordinary consumers. Meanwhile, employees cannot just demand for salary increases from their employers to be able to cope with the effect of the new tax measure. So it is us who should tighten our belts. The consumers are always at the losing end.
The RVAT will supposedly enable the government to collect billions of pesos to offset our huge fiscal deficit. I don’t have any quarrel with that. Indeed, it is the duty and obligation of the citizens to pay their taxes to the government. And no government can survive without collecting taxes from its citizens.
What is lamentable is that government is not giving us the basic services we need in return. If it does, it is not complete.
Our roads are bad and some projects are substandard. The government cannot provide decent public school buildings that are conducive for learning. Our government hospitals don't have enough equipment and medicines to serve the needy patients. Our senior citizens and retired public employees are not given attention by the government in terms of benefits.
So where did our taxes go?
In the meantime, we hear reports of government officials wasting taxpayers’ money. They go abroad on junkets. Senators and congressmen receive billions of pesos in pork barrel and yet only a portion of these go to priority and tangible projects. The rest are used for election purposes.
Worse, a big chunk of our taxes go to the pocket of corrupt government officials. Is this what we get for paying our taxes?
The point is, I am even willing to give half of my monthly salary as tax for as long as government takes charge of my future, like providing free schooling for my child, giving free hospitalization and medical care and pension once I retire, etc.
(bgnalzaro@gmanetwork.com)
(November 2, 2005 issue)
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