1

OUTLINE

Topic: Extended Value Added Tax (E-VAT) in the Philippines

Target Audience: Filipinos aging from 13 years old and above – teenagers, students, workers,

and ordinary citizens – will be the paper’s target audience.

Purpose No. 1: This paper should be able to prove that the E-VAT Law causes negative issues

and concerns that are unfavorable on the part of the majority of the Filipinos.

Purpose No. 2: This paper should be able to make the people realize that the revision of the law

will bring relief to the expenditures of most Filipinos, and to encourage corrupt government

officials to consider more the welfare of the people.

I. Introduction

A. Current condition of the Philippines under E-VAT

B. Importance of knowing E-VAT and its purpose

C. History and background of E-VAT, thesis statement

II. Body

A. Low purchasing power of the poor people

1. Effects of E-VAT on daily expenditures of the people

2. Reports from government agencies about those effects

3. Effects of exempting tax-levied goods to poor families

B. The nature of the law as also unfavoring the rich class

1. Consumption and usage of the rich people

2. Amount of taxes they shoulder compared to the poor ones

3. Oil consumption of the rich compared to the poor ones

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C. Only the government gets the credit

1. Prioritizing foreign ratings and investors

2. People’s viewpoints between E-VAT and the government

3. Claims from opposing political parties

III. Conclusion

A. Restatement of thesis

B. Implications, analysis of the effects of E-VAT

C. Recommendations and suggestions for the revision of the law’s content/coverage

INTRODUCTION:
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The Philippines has gone through a lot of phases in its history, and lately, the recession

has taken its toll on the nation’s economic condition. Filipinos tend to become insensitive of the

ongoing financial crisis because of the fact that they are used to the hardships brought to us by

life. Even though the country’s government has been putting all their efforts on the country’s

pyramiding dilemmas, they cannot seem to address the problems properly despite their infinite

number of solutions at hand. Taxes have been one of the answers preferred by senators to

increase the national budget and to pay foreign debts. So far, the Congress has passed three tax

measures: the Sin Taxes on Alcohol and Tobacco, the Lateral Attrition Law, and the Extended

Value Added Tax (E-VAT) Act of 2005 (Andag, 2005). Unfortunately, the main purpose of the

creation of the Extended Value Added Tax has not yet been appropriately followed and it has

continuously made life here in the Philippines much harder since the purchasing power of every

Filipino has been lessened. This is due to the increasing prices of goods, commodities, and

services brought about by the implementation of the Extended Value Added Tax Act of 2005,

more popularly known as “E-VAT”.

Understanding the concepts of the Extended Value Added Tax, whether the basic ideas or

the comprehensive facts, would help the Filipinos determine the validity and effectiveness of the

law’s implementation towards the general public. From the day it was created to its current

condition, E-VAT has made a lot of significant impacts in various aspects of the society,

particularly on the perspective of the individuals who make positive and negative responses to

the administration regarding the law’s implementation. Filipinos should be aware of the

implications that the law has provided throughout the years. Ignorance, unawareness, and

unwillingness to learn are the probable reasons why they remain insensitive and being got used

to the current life conditions in the country.

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The Extended Value Added Tax Act of 2005 is one of the Republic Acts authored by

former Philippine senator Ralph Recto. The senator said that the law aims to sharply reduce the

country’s fiscal deficit and will make the Philippines more attractive to foreign investors than

before (Uy, 2007). It expanded the previous value added tax (VAT) from 10 percent to 12

percent tax levied on various prices of market goods, and it also removed the tax exemption of

certain goods or those that were not part of the tax’s coverage before, such as (1) petroleum, (2)

sale or importation of raw materials used in the manufacture of petroleum products, (3) sale of

electricity by generation, transmission, and distribution, (4) sale or importation of non-food

agricultural products, marine, and forest products, and (5) services rendered by lawyers and

doctors of medicine (Abola & Tan, 2005). This act, also known as Republic Act 9337, had often

become the center of debates, issues, and oppositional uproars despite the fact that it was

imposed by Senator Recto and the administration of President Gloria M. Arroyo to address the

country’s fiscal crisis. In 2004, the government confirmed that the nation has a budget deficit of

Php 187 billion (Andag, 2005). In a press release, the Bangko Sentral ng Pilipinas or BSP (2009)

said that the Philippines’ foreign debt already amounted to $51.8 billion at the end of June of the

current year. Through the large amount of tax proceeds that can be collected, this will also be

able to fund and develop the government’s vital services to the public: healthcare facilities,

education, infrastructure, and social services (Ocao, 2008). Shortly after its implementation,

Philippine Finance Secretary Margarito Teves (2006) had said that this “would serve as the

cornerstone of the economic recovery program” of the country as far as the government’s

national budget deficit is concerned. Sadly, the majority of the Filipinos remain dubious of the

tax system since most of them are still experiencing poverty as they are coupled with buying

taxed goods and services. The imposition of the Extended Value Added Tax in the Philippines
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did not actually alleviate the economic condition of each Filipino because of the low purchasing

power of the poor people, the nature of the law as also unfavoring the rich class, and only the

government gets the credit.

BODY:

The price hike of basic commodities affects the daily consumption expenditures of each

Filipino, and the burden of this phenomenon was felt more by low-income earners together with

those living in poverty. Because of their poor financial condition, they are unable to buy more of

their basic needs and necessities like food and medicine whose prices continue to rise

periodically. In addition to that, poor families who are already in debt may experience additional

increase in their expenses as a result of E-VAT, thus forcing them to borrow even more just to

meet their basic needs or simply to survive (Yu, 2005). A survey regarding various issues and

concerns on the Extended Value Added Tax was conducted to 30 first year college students of

De La Salle University Manila taking up Majors in Economics for the current academic year

2009 to 2010. Figure 11 gives us the number of these students who agree and those who disagree

that E-VAT can be one of the reasons why poverty is present in Philippine society. As can be

seen from the results provided by the graph, almost 20 out of 30 students who answered the

survey agreed that E-VAT can be one of the causes of poverty here in the country. The rise in

prices of basic goods will force the people to either find ways on how to get income or find

another source where they can borrow money from. Recently, statistics were released by the

government intended to give public information regarding the impact of E-VAT to the livelihood

of Filipino families. According to the National Statistical Coordination Board or NSCB (2005),
1
See Appendix (Non-prose Forms).
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the additional 2 percent VAT hike will increase the cost of household expenditures by 1.4

percent. For the poorest 10 percent of the country’s population, this causes their monthly

expenses to rise by at least a combined Php 70, increasing their average monthly debt to Php

224. For a family who may be experiencing an uncertain and irregular livelihood, this amount is

still substantial (Yu, 2005). Figure 22 shows how the correspondents of the survey reacted on the

belief that E-VAT has a big impact on the people. As described in the graph, 28 of them, or

almost 95 percent of the correspondents, disagree on the belief that the daily expenditures of the

people are not interfered by the tax system. People may be forced to economize or to prepare

enough money in order to satisfy their daily needs as they are coupled with taxed goods and

services, even if some of these people earn minimum wages and are crippled in debt. On the

same stand, Councilor Edgardo Labella, chairman of the city council’s committee on laws, wants

the Senate to exempt fuel, food, and medicine from the coverage of E-VAT. The said exclusion

of basic goods will benefit the poor people because if Labella’s proposition was accepted, more

people would be able to have more food to eat and others will be saved from starvation, and that

they can also afford to buy cheaper medicines for medical treatment purposes (Ocao, 2008).

Labella (2008) argues that “the resulting exemption would mean a lot of savings to around 3.97

million Filipino families surviving on a measly Php 35.93 per day food consumption threshold”.

The tax system does not only affect those families earning little or no income. By its very

nature, E-VAT imposes the burden of taxation to everyone regardless of age, sex, status,

occupation, and financial ability (Figueroa, Aguas, & Cruz, n.d., p. 2). Families belonging to the

rich class are still affected by the tax phenomenon. They consume, buy, and use more products

subject to E-VAT than the poor people. In other words, they are being taxed more as they

2
See Appendix (Non-prose Forms).
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continue to acquire more tax-bearing commodities particularly luxury or other non-desirable

goods. The skyrocketing prices of oil and other petroleum products took a direct hit on the

expenditures of these families since most of them own private vehicles. Even when they

consume large amounts of electricity in their homes, eat at fancy restaurants, and stay at high-

class hotels, they are still part of E-VAT’s wide coverage. This only proves that the rich class

contribute a larger percentage of the total tax proceeds than the poor people that can be collected

in a year.

The government considers E-VAT as a major achievement towards fiscal stability of the

country because of revenues amounting to billions of pesos that can be generated from it.

However, this only shows why the government remains occupied with improving the country’s

financial condition along lines most acceptable to foreign ratings, crediting institutions, and

overseas investors. The government had been repeatedly announcing to the public of the benefits

that can be acquired from E-VAT. It turns out that their announcements fall on “deaf ears”.

Despite of the positive intention of E-VAT, more and more Filipinos continue to oppose the tax’s

implementation since there are still some of them who are not experiencing the benefits and

services promised to them by the government (Yu, 2005). Another reason is that the tax system

is not well-informed to the public, particularly the poor and uneducated ones, who continue to

struggle or suffer under the burden of taxation. Figure 33 reveals how many students agreed and

disagreed that the tax system is well-known by the majority of the Filipinos. As illustrated by the

graph, nearly three-fourth or more than 20 out of 30 correspondents said that most Filipinos are

not well-informed of the tax system. The implementation of the law of taxation was unknown to

most of the people, and that they were also unaware on the goals or the motives of the

3
See Appendix (Non-prose Forms).
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government on the day the law was created and signed. On the other hand, Figure 4 4 illustrates

how many of the correspondents agree and disagree if E-VAT is carrying out its main purpose to

serve the people. As described in the graph, nearly 20 of the correspondents agree that E-VAT is

accomplishing its goals. The creation of the said law can be intended for the benefit of the

Filipinos and for the economic recovery of the country. Combining the two varying results given,

most people continue to accept the purpose of E-VAT although they are not much familiar with

the whole concept of the taxation process. This can show how most of the Filipinos remain to be

passive of what the administration has been doing for them regardless of the real nature or

scheme behind their service. One Philippine female senator aims to abolish E-VAT from

governing the people. Senator Ana Consuelo “Jamby” Madrigal views E-VAT as a regressive

form of taxation, the reason why she filed Senate Bill 24 last 2007 seeking to repeal the law.

According to Senator Madrigal (2007), the economic condition of the country has not undergone

improvement since the making of the law, and many Filipinos continue to remain poor,

unemployed, and neglected by the government in the delivery of social services. Madrigal (2007)

asserted that “the 12-percent increase in the VAT to increase revenues and jump-start the

economy was a fallacy. The E-VAT from the very start was bound to fail because it was meant

only to serve only foreign creditors and investors who are benefiting significantly on tax

incentives and not the interest of the Filipinos”. On the survey conducted, Figure 55 can provide

support to the senator’s claim. As depicted in the graph, out of the 30 correspondents, more than

20 disagreed that the 2-percent rate hike of the tax from the previous 10% to 12% made

significant improvements on the country’s economic status. The amount of (additional) tax

shouldered by the citizens can have its effects towards their purchasing power, and this entails
4
See Appendix (Non-prose Forms).
5
See Appendix (Non-prose Forms).
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necessary financial sacrifice. Being the priority of the government, the people should make sure

that the government truly focuses on their general welfare based on the services, improvement of

educational, health, and infrastructural facilities, and social provisions. Figure 66 also gives credit

to the stand of Sen. Madrigal, and it shows what the correspondents have to voice out regarding

the said statement. As provided by the figure, the result from the survey is that 70 percent or 20

of the students disagreed on the belief that E-VAT prioritizes the general welfare of the public. If

the government’s attention is not really the people, then there may be some other reasons why E-

VAT was implemented. This entails the other motives of the government regarding the huge

amount of monthly-collected tax proceeds. Only in Figure 77 where one beneficial purpose of E-

VAT is described. According to the graph, from the 30 students, 20 have agreed that E-VAT has

been able to help the country pay its foreign debts. E-VAT could be a “tool” by the government

against the increase of these foreign liabilities. Although using the very large amount of revenue

that can be produced from the taxing system as funds for the said payment, this does not

guarantee that the government will be able to pay back the enormous amount of debt for a

particular period of time. The national budget deficit is high enough and merely impossible to be

repaid in a short span of time, and therefore, generating enough revenues from the tax system

would take very long and possibly indeterminable future periods.

CONCLUSION:

The whole concept of the taxation process will remain a problem in the view of the

general public. Even though the intention of imposing the Extended Value Added Tax is to
6
See Appendix (Non-prose Forms).
7
See Appendix (Non-prose Forms).
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support the services offered by the government to its people and to address the fiscal crisis

happening in the country, the reality is that increasing prices of goods and services proves to be a

burden to the people, considering that it can add up to the struggle or suffering being experienced

by those Filipinos living on the poverty threshold. The imposition of RA 9337 did not alleviate

the present economic condition of the Philippines. The majority of the people are not well-

informed of the tax system, and they remain to be uncertain on why was it imposed on the prices

of basic commodities. The 2 percent increase in the tax rate has not made significant effort to

improve the lives of many. Lastly, it made the poor even poorer as they still find better ways, or

find other sources of money, in order to meet their basic needs as their daily expenditures are

gravely affected by E-VAT. Figure 88 reveals the voice of the respondents of the survey

regarding E-VAT as helping to improve the country. As depicted in the figure, more than 20 out

of 30 respondents said that E-VAT has not enhanced the nation’s economic state, or it has not

developed the socio-economic condition of each Filipino.

Gasoline and electricity are among the E-VAT-covered products, and when their prices

continue to soar throughout the succeeding years, it would produce a “domino effect” on the

price of basic commodities in the market. Andag (2005) contends that fuel price have already

increased to as much as 22 percent, and from this, the transportation sector of the society would

receive that impact. Increases in the minimum fares of jeepneys had already been imposed to

cope with rising oil prices. If E-VAT continues to be governing the market as the “mother of all

taxes”, then it would continue to impoverish the already poor citizens of the nation. For poor

families who are already in debt, then they would be forced to borrow even more money from

others. Regarding the first day of approval of the tax law, a deeper look into the process of the

8
See Appendix (Non-prose Forms).
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decision by the court to implement the law can be taken into consideration. Figure 99 provides

data on how the correspondents reacted on that decision by the court. As demonstrated in the

figure, 20 from the 30 of the students said that E-VAT was a concept carefully planned and well-

sought by the government’s lawmaking committees before it pushed through for implementation.

This can denote that the expectations of both the government and the people would be fulfilled if

these expectations pertain to the beneficial effects of E-VAT. However, there is one aspect that

can still be given attention when it comes to E-VAT – the favorability of the law towards all the

politicians, lawmakers, and government officials. Unfortunately, Figure 1010 gives a negative

response. As illustrated in the graph, more than 70 percent of the students who answered the

survey disagreed on the statement that all members of the Congress, the Senate, and other

political parties favored the implementation of E-VAT. Opposing politicians may be

emphasizing the possible negative effects of imposing E-VAT to the people rather than

considering its beneficial side. Having stated the results from the previous two figures (Figures 9

and 10), this can indicate that even though E-VAT has pushed through after it had undergone a

significant process of analysis and assessment before its implementation, it is not approved on

the part of certain politicians and lawmakers. The people are still to abide by the law although it

is not well-supported by all government sectors.

In the aspect of the national business industry, would it be better if E-VAT is imposed on

big companies and sustainable business organizations, and exempt those people who receive

only minimum wage? Moreover, would it turn out that the tax system would be acceptable to the

people if the background, structure, and realizable benefits of the taxation process would be well-

9
See Appendix (Non-prose Forms).
10
See Appendix (Non-prose Forms).
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informed or carefully explained to them by the government? After all, they can do as such

through advertisements via mass media – television ads, internet, print ads – on which the

society have inclined on nowadays. Tax exemptions to more products and services can be taken

to maximum consideration by the government’s lawmaking bodies or committees in order to

meet or serve the people’s basic daily needs. Revisions of the content of the law such as lowering

the E-VAT of 12% back to 10% or lower (but not lower than 6 or 7%) would also provide relief

to all kinds of citizens, not only to the low-income earners but to everyone who consume or buy

the products and services subject to E-VAT. Andag (2005) suggested options that are more

publicly palatable when implemented. One is to improve tax efficiency. The Department of

Finance (2005) says that the government collected only Php 135 billion from the expected Php

279 billion in 2003 alone – a loss of Php 144 billion. The Bureau of Internal Revenue or BIR

(2004) admits that in 2004, only 39,833 out of 451,309 companies in the Philippines paid

corporate income taxes totalling Php 100.8 billion. An efficient process of the generation,

collection, and allocation of tax proceeds can stop this persistent crisis. Another way is to curb

tax corruption. Aside from pocketing tax proceeds collected, some collectors have been reported

to accept bribes from tax evaders. The BIR and the Department of Trade and Industry or DTI

should strictly monitor the issuance of receipts by E-VAT-registered companies and

professionals. According to the Social Weather Station or SWS (2005), most respondents of the

survey conducted before the tax’s implementation said that they would favor additional taxes as

long as the government uses the tax proceeds efficiently and addresses corruption effectively. It

is just a matter of how to convince taxpayers that the proceeds will be used for better roads and

bridges, better-equipped public schools and hospitals, and more efficient government services.
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From that, corruption of tax proceeds by government officials or collectors can encourage

taxpayers to resort to tax avoidance (Andag, 2005).

Still, the administration continues to consider the passage of the E-VAT law as a major

accomplishment towards fiscal stability. But this only highlights how far the local economy is

from the ideal of serving the people's needs. The E-VAT will probably bring more suffering to

the general public. Thus, this may not turn out to be an achievement but a possible economic

failure on the part of the affected citizens. Billions of pesos worth of monthly-collected tax

proceeds and other economic and financing sectors that help attract foreign investors and

contribute to the “clean” economic image of the country are not the actual measure or the things

that the government should prioritize. Rather, they should deal with the contentment and

satisfaction seen in ALL Filipinos to their day-to-day living, since the socio-economic condition

of the people determines the real economic performance of the country.

BIBLIOGRAPHY

Abola, V., & Tan, L. (2005, June). The expanded value added tax act of 2005: Changes and
conditions. Recent Economic Indicators, 1-3.

Andag, R. (2005, June). The extremely vicious, atrocious, tyrannical E-VAT. Human Rights
Forum, 3-6.

De Leon, H. (2005). Textbook on the Philippine Constitution. Quezon City: Rex Printing Company
 14

Figueroa, J., Aguas, Z., & Cruz J. (n.d.). The effects of the value-added tax on the different
consumption expenditures of low income groups. De La Salle University – Manila.

Ocao, J. (2008, April 28). E-VAT exemption sought for fuel, food and medicine. Retrieved
September 18, 2009 from http://www.philstar.com/Article.aspx?articleid=58880

Philippine foreign debt drops slightly in second quarter. (2009, October 1). Retrieved September
22, 2009 from http://www.bworldonline.com/BW100109/content.php?id=051

Solon hits 'misinformation' on effects of e-VAT. Sun Star Manila, (2005, November 6), ¶1-5.
Retrieved September 21, 2009 from
http://www.sunstar.com.ph/static/man/2005/11/06/news/solon.hits.misinformation.on.effects.of
.e.vat.html

Tullao, T. (2009). Elements of Economics. Quezon City: Phoenix Publishing House

Uy, V. (2007, July 2). Madrigal seeks EVAT repeal. Retrieved September 18, 2009 from
http://newsinfo.inquirer.net/breakingnews/nation/view/20070702-
74372/Madrigal_seeks_EVAT_repeal_

Yu, J. (2005, September). E-VAT, High Oil Prices to Drive Poor Deeper in Debt. Retrieved
September 18, 2009 from http://www.bulatlat.com/news/5-30/5-30-evat.htm

VAT collections up 63% to P127.3B in Jan-Nov. (2007, January 12). Retrieved September 20, 2009
from http://www.pia.gov.ph/?m=12&fi=p070112.htm&no=71&r=&y=&mo=
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APPENDIX

Non-prose
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Forms

Figure 1 shows that E-VAT is one of the causes of poverty. As revealed in the graph,

nearly 20 out of the 30 students (or nearly 65 percent of them) have agreed that E-VAT is one of

the additional root source of poverty. This would mean that E-VAT adds up to the major

problems being faced by the Filipinos living in the so-called poverty threshold. With the world

today, an ordinary worker would have to limit his/her salary in order to gain access in his/her

daily necessities. On the contrary, we also have to consider the idea of E-VAT as a benefit in our

own lives in some other way.

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Figure 2 demonstrates whether E-VAT has effected or not on the daily expenditures of

each Filipino. As can be observed from the graph, most of the people we’ve interviewed, or

almost 95 percent of them, believed that the burden of taxation is already felt by the people. This

can give us a notion that the people may struggle financialy as they are faced with highly taxed

products. The greater the amount of tax imposed on basic goods and services, the more the

people may likely to give out more from their incomes. Ever since the implementation up to this

day, it may continue to make life here in the Philippines much more difficult than it was long
 19

ago, but then, it does not guarantee pure poverty, rather, it might have long-term benefits which

we still know not of.

Figure 2 demonstrates the number of students who agree and those who disagree about

the full detail regarding the implementation of the Extended Value Added Tax. The graph tells us

that from the 30 people who were asked to answer our survey, more than 20 of them (or around

three-fourth of them) said that the general public is not well-informed that the E-VAT actually

exists. It can be assumed that not much people were aware of the implementation of the

Extended Value Added Tax, including its main purpose on why it was implemented. Creating a

law requires grabbing the attention or the awareness of the general public. On the other hand,
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nearly 30 percent of the students probably insist that the tax system is already familiar to the

community. If there are more people who are well-informed of E-VAT than those who don’t,

then there would be less questions or oppositions to expect from them.

Figure 4 illustrates the number of people who agree and disagree if E-VAT is carrying

out its main purpose. As can be seen from the graph, nearly 20 of the 30 people (or

approximately 65 percent of them) who were given the survey agreed that the main purpose of

the Extended Value Added Tax is to fund the projects of the government and to promote the

general welfare of each and every Filipino. This can denote that the intention of putting up the E-

VAT is to benefit its inhabitants by lessening their sufferings and assist them in their daily needs,

and from this, more social services by the government will be carried on. But this does not

necessarily pertain to the real scheme on why it was imposed to the public.
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Figure 5 shows the importance or value of this increase to the Filipinos, particularly on

the part of the students who answered the survey. The figure verifies to us that of 30

correspondents of this survey, more than 20 of them (or almost 75 percent of them) said that they

disagree on the statement that the 2% hike has been beneficial to their own lives, themselves. It

was last 2005 when President Gloria Macapagal Arroyo approved the rate hike of the Extended

Value Added Tax from 10% previously levied on various goods and services to 12%, and the

graph above can prove to us that it has just been once again another addition to the already

impoverished lives of the Filipino people. An additional rate of tax on the next years would also

add to the burden they are experiencing. While it may be possible that additional tax rates would
 22

be levied in the future, the current rate of 12% may be enough for the people to comply with as

of the present year.

Figure 6 shows how many students favor and not on the statement that the people’s

welfare is E-VAT’s top priority. As described in the pie graph, almost 70 percent of the students

have disagreed that the main purpose of the creation of E-VAT are the masses. This can tell us

that the tax proceeds supposed to be used for the benefit of the people might be going to the

personal funds of people with positions in the government. It will only make the lives of

Filipinos much harder than it already is but, there might still be a slight chance that the people do

not know about E-VAT slightly uplifting everyone’s current economic condition.
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Figure 7 provides data on what the respondents of the survey have to say on how the

Extended Value Added Tax is slowly helping the nation pay its foreign debts . As illustrated

above, around 20 of the 30 correspondents (more than half of them) have agreed on the fact that

E-VAT is little by little aiding our poverty here in the Philippines. This would entail that the

Philippines is slowly lifting itself up from the low level of economic condition it experiences.

These days, the government’s budget for foreign debts have been gradually increasing

throughout the years caused by the implementation of the E-VAT. On the other hand, there is

still a point to consider that E-VAT is just an alibi to a much more grave consequence that would

lead to the soaring of much more foreign debts.

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Figure 8 tells us what the correspondents of this survey have to say on E-VAT as helping

to improve the country’s socio-economic condition. As described in the figure, more than 20 of

them (or almost 75 percent of them) decided to disagree on this matter because they refer to the

reasons or statements already mentioned in the previous graphs. One of these is that E-VAT can

be one of the causes of povery experienced by most of the Filipinos, and another is the belief that

the tax proceeds expected to be used as subsidies to support the government’s services are not

well-informed to the public. The government still contends that one of the reasons why the

Extended Value Added Tax is implemented is that it will serve the needs of the majority in order

to promote their condition of living here in the Philippines. Given these various reasons, people,

however, may be expected to question the government on what ways can E-VAT help them in

their current living conditions.

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Figure 9 shows the number of correspondents who agree and disagree on the decision by

the government regarding the implementation of the Extended Value Added Tax. As can be seen

from the graph, nearly 20 out of the 30 students (more or less 60 percent of them) considers the

implementation a great concept thought by the lawmaking body. This can imply that before the

E-VAT was implemented, it had gone through deep analysis which means that the law would be

beneficial to the welfare of the people and of the economy. Continuing to consider the passage of

E-VAT as a success would result to more laws being open freely for general acceptance

regardless of its scheme. However, coming up with a new law to implement still requires a very

long process.
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Figure 10 confirms whether E-VAT is favorable or not to all the sectors of the

government. As depicted in the graph, more than 70 percent or nearly three-fourth of the students

who answered the survey disagreed that the law is well-supported by these various sectors. This

would mean that there are still members of these sectors who are trying to emphasize the

possible negative effects of the passage of the taxation. This can tell us that when it comes to

lawmaking, the voice or the decision of the one sitting in the highest position of the court would

still prevail regardless of opinion of the lower opposing parties. But it may turn out to be favored

by the majority of the government officials since the implementation pushed through and since

then, it had become a permanent standard.

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Survey

Sheets
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