This was the observation of Felipe Gelle Jr., secretary-general of Bagong Alyansang Makabayan (Bayan) here.
"The imposition of the EVAT shows how callous the Arroyo administration is about the plight of the poor," Gelle said.
Bayan has been leading protest rallies against President Arroyo, whom it wants ousted from power, and in condemning EVAT, which would increase the prices of all commodities covered by the new tax.
Gelle also believes that the tax take from EVAT would hardly be used to finance infrastructure projects and livelihood programs, saying it is really designed to generate the cash needed to pay foreign loans and other corruption-ridden borrowings.
He added that the reason why Citibank and the International Monetary Fund (IMF) are now demanding that more taxes be levied against the heavily burdened Filipino people so that the Arroyo regime could pay its payment arrears. It’s really a swindle, he added.
Bayan also noted that the EVAT penalizes millions of consumers but would deign not touch the traditional tax cheats, as explained by tax expert Atty. Frederick Capitan, lawyer Wilson Gamboa, a practitioner here, and former Bureau of Internal Revenue (BIR) officer Salvador Bonus.
Ariel Guides of Sanlakas said: "It will add more fuel to the economic crisis and might speed up the removal of Arroyo because it will hurt the stomachs of people. It will trigger more street protests."
To Atty Rodolfo Parreño, head of FPJ Movement in Negros Occidental, EVAT will be the last straw for the Filipino people, as the pass-on tax that will cause the prices of goods to skyrocket. "The meltdown of the economy will be used by Arroyo as an excuse to declare a state of emergency or even declare martial law," he said.
The implementation of EVAT will hasten the downfall of Arroyo administration," says Ben Solilapsi of Alab-Katipunan-Negros.
He said the administration officials should have listened a long time ago when different sectors urged them to take alternative steps instead of imposing additional taxes.
These proposals include tax collection efficiency, eliminating excess fat in the budget and conducting serious management audit of government-controlled or -owned corporations for the purpose of identifying and replacing the non-performers.
Bacolod Rep. Monico Puentevella said he has recommended to Mrs. Arroyo to implement EVAT after Christmas even as the Supreme Court (SC) ruled that it is constitutional and consistent with the need to raise revenues and use resources to boost the economy.
By January, 12% from 10% VAT will collected. The corporate income tax will increase to 35% from 32% until 2008, but the same will be cut to 30% in 2009.
Rep. Ignacio Arroyo of the 5th district of Negros Occidental, a brother-in-law of the President, said the implementation of EVAT will be good for business as it will draw investors and boost the economy. "We have to sacrifice for the short-run so we can reap benefits in the future," he said.
