RA 9337
June 28th, 2005 at 7:55 am (General, National Politics, Economics)
Republic Act 9337 An Act Amending Sections 27, 28, 34, 106, 107, 109, 110, 111, 112, 113, 114, 116, 117, 119, 121, 148, 151, 236, 237 and 288 of the National Internal Revenue Code of 1997, as Amended, and for Other Purposes otherwise known as the Expanded Value-Added Tax (VAT) Law. July 1, 2005: take note of this date. This is the day when RA 9337 takes effect.
The most notable consequence of RA 9337 is the lifting of the exemption of Value-Added Tax on petroleum products. By July 1, gasoline prices will go up by 10%. Simply put, there is an increase of about P3 per liter of gasoline. Yes, that’s one plus one plus one. That’s pesos not cents. Compound this with the forever rising prices of petroleum products in the world market, legitimate economists say that local gasoline prices might inevitably reach P50 per liter within the year. Consequently, the prices of all commodities and products will rise. Contrary to what the government wants us to believe, the price of EVERYTHING will increase.
According to the government, the poorest of the poor will not be affected by this since the price of basic commodities, allegedly, will not be imposed with VAT. Among the goods allegedly not affected by this are rice, canned sardines and instant noodles. Not only is the government condemning the “poor” to an unhealthy diet, they have also overlooked that even buyers and sellers of these commodities ride vehicles which run on petroleum products. Yes, everything is affected by RA 9337. And the hardest hit are the poorest of the poor. To begin with, they earn below the minimum wage, if they earn money at all. And even the minimum wage is way below meeting the basic needs of a decent living man. Now they have to contend with higher prices of every product and commodity available.
Moreover, the prices of basic services, most notably of electricity will also rise by 10% or more. So too will water services increase.
Furthermore, professional bills will also increase by 10%. Yes, artistas will have to pay taxes equivalent to 10% of their earnings. More importantly, lawyers, doctors, engineers and other professionals will also have to do so. And of course they could not possibly carry the weight of this 10% tax without passing it on to their clients. Not only will people be undernourished, they will be condemned to a life of minimal health and legal services, if any.
How can the lives of Filipinos be any better if they earn so little and need so much? How can they sleep better at night when their stomachs are empty? How can they be more productive if they have little or no access to healthcare?
Now tell me, does anyone honestly believe that RA 9337 will do the country and its people any good?
Download the full text of RA 9337.








