Time to scrap VAT
First hand reports have reached this writer that the people of Kalibo and
Government, non-government, and church groups have been flying food, water, and blankets to the poor victims of typhoon Frank in
Meanwhile the cost of diesel fuel has risen to 60 pesos per litter and that is just so that the oil firms won’t loose too much of their expected profits for the month of June. The economic crisis will continue to worsen and all ready the middle class is starting to feel the pinch. Many professionals, including myself, have been reduced to near poverty and have been living from one pay check to the next. Their savings are all gone after paying for tuition fees, textbooks, school uniforms, and the like. Economists predict that more and more of the middle class will likely join the ranks of the poor this year. That statement is actually almost fallacious as it is merely stating what is already obvious to the people.
And what is the government doing to abate this economic crisis. Well aside from spending millions of pesos at a junket to the
The government is giving out dole outs left and right to avert a possible rebellion amidst and because of the economic crisis. People become violent you see when they become hungry. But what would happen when they actually run out money to give as dole outs. The government can’t continue to subsidize the price of NFA rice and give 500 peso dole outs forever. And when the poor won’t receive these dole outs then there will be hell to pay.
It’s time to scrap the VAT. The government is mismanaging the extra income it makes from VAT anyway. It would help our people from all classes if VAT is scrapped. The cost of living and the prices of food and services would go down tremendously and almost immediately. This would go a long way to diffuse a hard and worsening condition. It may also prevent rioting and violent protests on the streets. It might just save Madame’s neck. But will she do that to ease the financial woes of the Filipino? Probably not, she is too much of a liberal economist who believes in everything that the WTO tells us and is more concerned with what foreign investors say about her than to heed the calls of her own people. We face bleak and bleaker times.