Expanded VAT

[boybi]

expect yata nila i-shoulder ng mga businesses ang added cost ng vat. how would they expect that to happen when some businesses have an average profit margin of 5% like grocery stores?

[wowiesy]

kung sabagay... chicken and egg ata yan eh...

if the bir / dof will take all the financial statements being submitted to them at face value, it will really seem that dpat eh kayang kaya na i - absorb ng mga companies ang added burden... that is IF all the companies are actually declaring the right figures..

dun naman sa mga hindi nag dedeclare ng tama.. di rin basta basta makapalag since magiging conflicting yung claims nila versus what they actually filed.... either way, the bir / dof get their way...

and also, i browsed through the main decision of the supreme court.. and ang sabi nga.. the nature of the VAT in itself is a pass on tax.. kaya nga declared din constitutional yung tinanggal ng bicameral committee yung no-pass on provision (na kasama sa senate version)...

i still maintain the position that senator ralph recto wrecked the whole idea when he introduced his own ideas in the senate bill.... kesyo spread the weight to the whole country (kaya pati oil and electricity covered na ng vat) instead of the house version na 12% but yung mga zero rated / exempted sa vat eh almost intact... no matter what you say na binaba ang franchise tax (for electrical utilities) and excise tax (for oil products), the shipping industry and the tollways itself, automatic magtataas... all goods need to be shipped from 1 point to another... so they still expect na walang effect sa prices of goods?


sa prices of diesel lang palagay natin... now at about 30.00.. pag may vat na.. what.. aakyat ng 33.00? yung oil companies na every week nagtataas ng 0.50.. 0.05 of that will go to the govt in the form of taxes... 0.45 lang ang pambawi ng mga oil companies sa underrecoveries... theoretically, sa mga companies... all these purchases eh may input credit.. and i-declare mo to get output credit... pass on nga... but then sa end consumer papano na? hindi na sya maka declare ng input since personal consumption yun.. kaya wala na siyang output... siya ang eventually sumalo ng load... tapos ang lakas pa ng loob sabihin ni bunye na hindi maaapektuhan ang masa?

ang punto ko lang naman is... let's just call a spade a spade...

[BlueBimmer]

pati nga FHM tumaas na from 120 to 150! not sure kng for this month lng

[GlennSter]

pati nga FHM tumaas na from 120 to 150! not sure kng for this month lng

langya!!arhahrahr

[ILuvDetailing]

pati nga FHM tumaas na from 120 to 150! not sure kng for this month lng

we have to make some sacrifices :bwahaha:

[nicolodeon]

pati nga FHM tumaas na from 120 to 150! not sure kng for this month lng

Honga eh!!!

[111prez]

pa photocopy nalang!

ay, labag pala yan sa intellectual property laws natin

hehehehe

[creepy]

Retailers and distribution companies with very thin profit margins will be killed by this. There's a provision which is very problematic - the one capping allowable input VAT at 70% of output. This effectively shaves off as much as 3% off the margins of many companies ==> deadly for low margin, high volume businesses.

[BlueBimmer]

lamang lng mga retailers tataas ang kita sa price increase ng FHM kahit same percentage, like me hahaha

[111prez]

Retailers and distribution companies with very thin profit margins will be killed by this. There's a provision which is very problematic - the one capping allowable input VAT at 70% of output. This effectively shaves off as much as 3% off the margins of many companies ==> deadly for low margin, high volume businesses.

yep, tama yan. see the discussion on the fortuner dealership woes on this

the references are:

A. Section 8 of RA 9337 (evat law)(amending section 110(B) of the 1997 Tax Code);

B. Section 4.110-5 of BIR Revenue Regulations 14-2005 dated 22 June 2005; and,

C. BIR Revenue Memorandum Circular No. 29-2005 dated June 29, 2005