Tuesday, July 31, 2007

Incompetence of Government?

"IMF: Better collection, not new taxes, is needed "

Look, the government imposed the 12% EVAT last year. Since then, almost everyone from restaurants to shops are charging EVAT to the detriment of the people and the buying public. We endure, thinking that the money will be collected and spent on worthwhile projects such as new schools, new books, medicine, new roads etc.

But the government failed to collect all these EVAT payments. Where are they? Why the government cannot collect them? Where is the money paid by people? By everyone.

All I can say is that: the government should NEVER impose taxes that they cannot collect! The tax collection system of this country must be overhauled!

PS: may duda ako that the EVAT charged to me by the shop where I buy supplies for the maintenance of my motor vehicles, are not being remitted to the BIR. So...I think this EVAT thing only benefited the business owners. BIR is incompetent and sleeping on the job.


Another is the Peso. In January last year, or since the the peso was 56 to the dollar, it has now risen to 45. There had been huge appreciation - let us just put it at 10%. What are the supposed implications of these to the people here in the country? For OFWs, the implications is the erosion of their buying power - their dollars purchase fewer goods than before.

Now let us go back to the buying public.

Supposedly good and services paid in dollars should cheapen by at least 10%, since the peso appreciated by at least 10% diba? But the reverse is happening.

1. Fares that should have gone down by 10%, operators (I am an operator) are asking for fare increases!

2. Gasul which way back when the Peso was at 56 costs, 480 pesos per 13.3 kg tank; and now that the peso has gone up to 45, the Gasul prices has also gone up to more than 500 per tank! I don't understand.

3. Food sold in the market, even burger at Mcdo has also gone up. To mention a few.

What are the benefits, then, that are being afforded by this peso appreciation to the people of the Philippines? Pardon my ignorance but I need answers.