Makati mayor unrelenting in fight vs EVAT

By CZARINA NICOLE O. ONG
March 22, 2010, 3:32pm

United Opposition (UNO) vice presidential bet Jejomar C. Binay continues with his fight against the Expanded Value Added Tax (EVAT), insisting that it is an unnecessary tax which only burdens the poor.

“What has been the benefit of EVAT then? Was it able to finance the projects that it was supposed to? Did it cater to the needs of the poor or did it only add to their burden?” Binay asked.

According to the statistics of the IBON Foundation, the targeted 50 percent of incremental VAT collections intended for social services and capital expenditures by 2010 has not yet materialized.

Binay also explained that EVAT is an indirect tax which is imposed on everyone, without regard to social class.

“I have no beef on the imposition of taxes, but there is such a thing as an unnecessary tax. And EVAT is one of them. Revenue generated from EVAT could well be raised from better anti-smuggling efforts, or a tighter crackdown on tax evaders, which incidentally resulted in a P107 billion loss to the country in 2006,” he said.

Starting from 30 percent in 2006, and intended to rise annually, the government even slashed the share from EVAT for health, education and shelter to only 29 percent in 2008.

Out of the total EVAT collections, 26 percent went to infrastructure, and an even higher amount went to technology, tourism, and security.

“If EVAT was intended to aid the poor, then how come they are the ones shouldering nearly the entire burden? How come even the most marginalized are not spared from paying EVAT?” asked Binay.