Thursday, November 03, 2005 (Philippines)

A driver balances his passengers as he prepares to drive his modifed motorcycle, locally called a “Skylab,” which accomodates an average of eight passengers. With bags. Finance officials say the increase in fuel prices as a result of VAT shouldn’t go beyond eight percent, but commuters are bracing for the worst.(AP photo) For the “ruinous consequences” of the Reformed Value-Added Tax (RVAT) law, blame the judiciary, a Supreme Court (SC) justice said. In his dissenting opinion, SC Associate Justice Dante O. Tinga pointed out that tax statutes may be invalidated if they pose a “clear and present danger” to the lives and property of citizens. Shares hit an 11-week high yesterday, as investors cheered the implementation of the long-delayed tax law, a key measure for the government to raise revenues. [full story]