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Saturday, February 01, 2003
Sienes: Barking up the wrong tree
By Cris G. Sienes
'In our view, the VAT law should really be amended, especially as it is applied to people in the entertainment industry. A line must be drawn between superstars who earn millions per film and movie bit players and stuntmen who earn measly sums per project.'
LAST January 20 movie stars, film directors, doctors and professional basketball players marched to the Senate to protest the 10 percent VAT on professionals.
Locally, Councilor Angela Librado joined groups opposing the 10 percent VAT and blamed the Arroyo administration for it.
Movie stars claimed that only 10 percent of those in the entertainment industry are superstars who earn millions per film. The rest are movie bit players and stuntmen who earn measly amounts per film.
For her part, Librado was quoted in a report in a local daily (not this paper) as having said that "the new tax imposition on entertainment, media, sports, legal and medical fields (is) another indication of the Arroyo administration's skewed view of good governance."
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Personally we are also against the 10 percent VAT on professionals for the simple reason that this will certainly be passed on to the people.
For instance, doctors who charge P200 to P250 per consultation would likely add the 10 percent VAT to their consultation fees and thus impose a heavier financial burden especially for poor patients. In this aspect the 10 percent VAT on professionals is indeed anti-poor.
But movie actors and actresses, film directors, doctors and professional basketball players were barking up the wrong tree in staging their protest before the Senate.
Similarly, Councilor Librado may have done the same thing in blaming the
Arroyo administration for the 10 percent VAT on professionals.
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The truth is that the 10 percent VAT on professionals is not a new tax imposition. The VAT law, which took effect in 1994, already carried the provision imposing a 10 percent VAT on professionals. The imposition of the
10 percent VAT on professionals was simply deferred until now.
The VAT law emanated from the House of Representatives, not from the
Senate. So the protesters should have staged their protest before the House of Representatives. In fact, as early as 1994 the protestors should have demanded the removal of the 10 percent VAT on professionals.
Likewise, since the executive branch is merely implementing the VAT law as passed by Congress, why blame Malacañang or the Arroyo administration for it? Blame the authors of the VAT law or Congress instead.
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In our view, the VAT law should really be amended, especially as it is applied to people in the entertainment industry. A line must be drawn between superstars who earn millions per film and movie bit players and stuntmen who earn measly sums per project.
It certainly would not be anti-poor to impose the 10 percent VAT on superstars. But movie bit players and stuntmen should be charged less or simply charged through their individual incomes.
It would be grossly unfair to lump up the movie bit players and stuntmen with superstars in the imposition of the 10 percent VAT on professionals.
As for professional basketball players, they earn millions. Even rookie professional basketball players are given contracts of from six to eight million when they enter the PBA.
A rookie in the PBA receives a minimum salary of P150,000 a month during the first year, more during the second year, and much more during the third year.
The salaries do not include bonuses and other perks for games won, for entering the semifinals, for figuring in the championship, and for winning the championship.
Some PBA players are also given cars and lands and stakes in business of the company they play for. So can professional basketball players be classified as poor, and can they rightfully claim that the 10 percent VAT imposed on them is anti-poor?
What do you think, dear reader?
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Point to Ponder: "He who reforms himself has done more toward reforming the public than a crowd of noisy, impotent patriots." --Lavater |
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