Lawyer Frederick Capitan, a former top official of the anti-fraud division of the Bureau of Internal Revenue (BIR), said agricultural and fisheries products are transported from land and sea to the markets and the cost of fuel will surely be tacked on the market price.
Moreover, processed food products would have multiple EVAT tacked to them since they use tinplates, electricity and water in the manufacturing process, he added. "It means all the EVAT assessed on the individual raw materials will be added to the cost.
Another former BIR official, Badong Bonus, said the government has become so cash-strapped on account of m,any business closures that it is panicking and slapping more taxes on consumers to earn revenue to sustain operations.
In Cebu City, traders who will take advantage of the Expanded Value-Added Tax (EVAT) Law and unreasonably jack up prices of goods can expect to be embarrassed by the Cebu City government, or worse, lose their business permits.
City Administrator Francisco Fernandez, who is concurrent head of the Cebu City Price Monitoring Council (CCPMC) said they will immediately check the effect of the EVAT as they focus on informing the public and merchants of the prevailing price ceiling of basic commodities and medicines, as monitored by the Department of Trade and Industry (DTI).
To encourage fair trade practices, Fernandez said they will put up billboards in key areas in the city that will inform the public where they can buy cheap goods and where the same goods are sold at a higher price.
"We will even name the establishments that are overpricing their goods to inform the public and hopefully to stop the establishment owners from implementing unwarranted price increases," he added.
Relatively, Councilor Arsenio Pacana said he will suggest to the City Council to summon owners of establishments who may take advantage of the EVAT.
In Iloilo City, an official of the Department of Trade and Industry (DTI) is warning consumers against panic buying as implementation of the Expanded Value Added Tax (EVAT) started on November 1.
DTI Regional Director Dominic Abad said people panic buy when price of commodities increase or there is lack of supply of goods in the market.
"I don’t think there should be any reason for any panic buying. I don’t think it is worth really stockpiling commodities," he stressed.
Abad said what the people should do is to know what items would be affected by the EVAT since there are products that are already covered by EVAT years before.
He said fresh and agricultural products are exempted from EVAT while manufactured goods have been covered even before, thus, these would not longer be charged with a new EVAT.
