DOTC opposes planned VAT on highway fees

[kevin3000]

MANILA, Philippines--The Department of Transportation and Communications (DOTC) is opposed to the plan to tax highway fees, saying it would needlessly burden motorists.
But Transport Secretary Leandro Mendoza said that if the move to slap a 12-percent value-added tax (VAT) on highway fees would be deemed legal, then the department would have no choice but to order its implementation.
“The TRB (Toll Regulatory Board) and the DOF (Department of Finance) are going to have a meeting regarding the legality of the VAT on toll,” Mendoza said.
“But what some people are arguing is, toll is already a form of tax so you can’t tax it again,” he added.
The plan to impose a 12-percent VAT on toll was deferred by Malacañang for the second time last week, following a similar decision in 2005, to avoid putting undue burden on motorists.
The toll VAT was revived by the Bureau of Internal Revenue last month with the issuance of a revenue memorandum circular that ordered motorists to shell out an extra 12 percent to use the country’s toll roads.
The VAT imposition and the toll increase that would have inevitably followed was supposed to take effect this year, but was railroaded at a cabinet meeting in Baguio City last month.
The order is among many revenue-generating measures that the DOF has been pushing in a bid to raise government collections and close the budget gap.
Following an expected P300-billion gap between state revenues and spending in 2009, the government expects a deficit of about P233 billion this year.
But officials have said this may have to be raised as the state’s tax take continues to slump


WTF! kurakot nanaman!

[fourtheboys96]

MANILA, Philippines--The Department of Transportation and Communications (DOTC) is opposed to the plan to tax highway fees, saying it would needlessly burden motorists.
But Transport Secretary Leandro Mendoza said that if the move to slap a 12-percent value-added tax (VAT) on highway fees would be deemed legal, then the department would have no choice but to order its implementation.
“The TRB (Toll Regulatory Board) and the DOF (Department of Finance) are going to have a meeting regarding the legality of the VAT on toll,” Mendoza said.
“But what some people are arguing is, toll is already a form of tax so you can’t tax it again,” he added.
The plan to impose a 12-percent VAT on toll was deferred by Malacañang for the second time last week, following a similar decision in 2005, to avoid putting undue burden on motorists.
The toll VAT was revived by the Bureau of Internal Revenue last month with the issuance of a revenue memorandum circular that ordered motorists to shell out an extra 12 percent to use the country’s toll roads.
The VAT imposition and the toll increase that would have inevitably followed was supposed to take effect this year, but was railroaded at a cabinet meeting in Baguio City last month.
The order is among many revenue-generating measures that the DOF has been pushing in a bid to raise government collections and close the budget gap.
Following an expected P300-billion gap between state revenues and spending in 2009, the government expects a deficit of about P233 billion this year.
But officials have said this may have to be raised as the state’s tax take continues to slump


WTF! kurakot nanaman!

i am not familiar with the details of our VAT law. but wtf is value-added in using a road?

[kevin3000]

thats it! nagbabayad naman tayo diba?

[Gen. Miting]

value-added more to the nlex slex

[badsekktor]

tax na naman! wala talaga sa bokabularyo ng gobyerno ang magtipid at ang tanging naiisip na solusyon sa kakulangan sa pananalapi eh maglagay ng bagong buwis! letseng mga damuhong kayo! mabulunan sana kayo sa kinakain nyo! simula sa taas hanggang sa pinakamababa lahat na lang may sari-sariling raket sa gobyerno!

Langya may tax ka na hihingan ka pa ng lagay ng mga tauhan nila! kapag di ka naglagay iipitin ka naman!

[falken]

Yung Road User's Tax na binayad natin saan na napunta? Ngayon Vat naman sa Tollways?! Wala nang hiya talaga ang gobyerno na ito.

[bok_yo]

lapit na kasi election... di na ako magtataka.... road users tax is nowhere to be found...

kawawa naman si juan dela cruz....

[triggerman16]

niananakawan tayo ng walang kalaban laban, through taxes, and taxes and new taxes to come...

[ghosthunter]

Another attempt of the Philippine government to steal more money from the people.

If the RFID thingie didn't work, they're trying from another direction...

[Chikselog]

Sheesh

What's next? Tax for every use of your car?

[gertrude]

di ba meron nang "road users tax" na binabayaran pag nagpapa-renew ng rehistro? tama ba?

[daimengrui]

di ba meron nang "road users tax" na binabayaran pag nagpapa-renew ng rehistro? tama ba?

Exactly, before they implement another revenue generating scheme they should answer where has the 6B peso Road User Tax has gone.

[batang_raon14]

hay........ to look at the brighter side - it's a good time to start commuting once that gets implemented I guess. Umiiyak na nga bulsa ko sa gas at parking sa Makati eh, dadagdag pa 'to. Olats na to the max.

[gertrude]

hay! i guess everything thats happening today is inevitable, we've just got to live with it.

heres an excerpt from baz luhrman's "everybody's free (to wear sunscreen)"

"Accept certain inalienable truths, prices will rise, politicians will philander, you too will get old, and when you do you'll fantasize that when you were young prices were reasonable, politicians were noble and children respected their elders..."

[uls]

the Phil. govt is billions of dollars in debt

expect the gov't to be very creative in coming up with ways to squeeze money out of its citizens

[ghosthunter]

Just wait for the day the Philippine government finds a way to tax the air we breath... It would probably be claimed to be related to the new clean air laws they would be passing soon too.

[chua_riwap]

Baka gayahin na rin ng Pinas ang Singapore, where may tax ang:

- TV sets sa household
- Sanitary fixtures
- Car Stereos

[falken]

If you drive a car ), I’ll tax the street,
(If you try to sit ), I’ll tax your seat,
(If you get too cold ), I’ll tax the heat,
(If you take a walk ), I’ll tax your feet.
Taxman.

[marg]

Baka gayahin na rin ng Pinas ang Singapore, where may tax ang:

- TV sets sa household
- Sanitary fixtures
- Car Stereos

In Singapore, you see where your taxes go. Walang lubak, walang kalat, walang squatter.

[Kankarot]

In Singapore, you see where your taxes go. Walang lubak, walang kalat, walang squatter.

In da Philippines also,you see where our taxes go-to the pockets of Corrupt politicos, overpriced or ghost projects, substandard public works, and lots of subsidies and rule bending to accomodate squatters at the expense of taxpayers.

We all see where our taxes go but collectively, we don't do enough to force real change.