Monday, May 19, 2008

Raise the (Tax Exemptions) Roof! Part 3

I can't get House Bill 9371 out of my mind, but I promise that this will be the last post about it.

If the government really wants to alleviate the plight of the people by raising the tax exemptions, why not just lower rates of indirect taxes (i.e. excise and VAT)? The tax exemptions will surely be a big help to the laborers who are in the formal sector. But they will not at all benefit those in the informal sector (e.g your friendly neighborhood barker, DVD pirate, tricycle driver, sampaguita vendor, etc.), the very set of people who need a reprieve from the ricing prices of commodities. I don't understand why the government is eager to pass the said bill while it is so averse to the idea of suspending the EVAT.

Photo: wili_hybrid, Creative Commons, Flicker

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