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VAT, SLEX Toll, "Sin Taxes": "Honest" Aquino Breaks Another Campaign Promise

August 16, 2010

Aquino’s foot in mouth disease just keeps on getting worse. Remember that in his speech before the Makati Business Club Jan 2010 he promised no new taxes and no tax rates hike because curbing corruption will free up funds. Aquino didn’t even wait for a year to flip flop and break his campaign promise of no new taxes and no new tax rate hikes.

Before the Elections

Antipinoy.com called the bluff in Jan 2010 in Noynoy’s MBC Speech is full of crap. Even the Arroyo administration waded in about Noynoy’s pledge of no new taxes.

http://www.abs-cbnnews.com/business/01/22/10/palace-hits-noynoy-over-no-new-tax-pledge

MANILA, Philippines – Malacañang chided presidential candidate Sen. Benigno “Noynoy” Aquino III of the Liberal Party over the promises he made to the business community on Thursday, which include refraining from imposing new taxes and increasing tax rates.

Gary Olivar, Palace deputy presidential spokesperson, said that what Aquino did was “unfair” to the public since these may only be empty promises once he gets elected.

He compared Aquino’s no-new-tax pledge to what former United States President George H.W. Bush did when he accepted his nomination for the 1988 presidential elections.

His statement, “Read my lips: No new taxes”, was said to have helped Bush greatly in winning the 1988 presidential elections. But once he took the highest position, Bush raised taxes as a way to curb the US budget deficit.

On Thursday, Aquino told members of the Makati Business Club that he would not impose new taxes or raise tax rates if elected president. He also promised to pursue the rationalization of fiscal incentives as part of efforts to plug revenue leaks and lower the budget deficit.

In an attempt to court the business community’s support, he stressed that lower taxes is part of his “vision to transform our country.”

In Feb 2010, Aquino reiterated his no-new tax no new rate hikes promise by saying it was unconscionable to impose a heavier burden on those already shouldering the bulk of taxes and that a better alternative was to improve the collection efficiency and bring it back to the peak it achieved during the Fidel V. Ramos administration.

After the elections

Funny how winning an election suddenly changes the no new taxes or no tax hikes spin to one on “favors hiking sin taxes”.

As of August 15, 2010 – barely 3 months after winning the election, Aquino has flipflopped again – this time on taxes.

Aquino favors hike in sin taxes
By JC BELLO RUIZ
August 16, 2010, 6:33pm

Amid public clamor and the Supreme Court’s issuance of a temporary restraining order (TRO) against the plan to impose the 12 percent value-added tax (VAT) on toll rates, President Benigno S. Aquino III said on Monday he has put on hold the tax measure and is contemplating on raising sin taxes on cigarettes and liquor.

Aquino, in an interview after administering the oath of office of his first SC appointee Associate Justice Ma. Lourdes Sereno, said that with the suspension of the imposition of the VAT on toll, the government’s finance and legal teams are now studying Plan B, which might include the raising of sin taxes that Aquino favors.

Aquino also said the implementation of the 250 percent hike on toll rates in the newly-rehabilitated South Luzon Expressway (SLEx) is more of a priority to him.

“The VAT (on toll) actually I’ve put it on hold as of last week. This is still subject to a lot of discussions. My first priority is the SLEx – the impending 250 percent increase, and the initial solution that we had sought to employ to address that increase is not panning out,” Aquino said.

Aquino has been lamenting the SLEx toll hike that he even said in a jest last Friday, during the oath-taking of the Organisayon ng Pilipinong Mang-aawit officers, that his hair continues to become thinner day by day because of the problems he inherited from previous administrations which include the planned 250 percent hike in toll rates of the Alabang (Muntinlupa)-Calamba (Laguna) tollway.

What’s the score – hike or no hike?
By the looks of it – pending judicial review – the SLEX toll is a done deal. The Aquino media mouthpiece, ABS-CBN is on the record as saying All Systems Go for VAT Toll

MANILA, Philippines – Barring any court intervention, it is all systems go for the implementation of the value-added tax (VAT) on the use of expressways starting next week, Malacañang said, following a Senate hearing on the controversial tax measure on Thursday.

“It would appear that the VAT on the toll would still be a go, unless otherwise directed,” Presidential spokesperson Edwin Lacierda said, noting that the Supreme Court has not issued a temporary restraining order.

Lacierda’s statement came after senators, in a hearing on Thursday, grilled Bureau of Internal Revenue (BIR) chief Kim Henares over the agency’s plan to impose the 12% VAT on toll beginning 10 p.m. Monday.

Lacierda maintained that Malacañang remains firm on its stand to tax tollway operations, a move he said should have been done in 2005, when the Expanded VAT Law was enacted.

The presidential spokesman insisted that the VAT is necessary to raise additional funds for vital government social services.

“Itong VAT na ito, bagama’t ay masasabi nating makakasakit sa mga motorista, ito pong makokolekta po natin ay magagamit po natin sa mga programang pangkalahatan po. So, that is the purpose why we are collecting all these taxes, for a greater good,” Lacierda said.

Senate ways and means committee chair Ralph Recto said that the E-VAT, the law he authored and now being cited by the BIR to justify its plan, never imposed VAT on tollways.

“Never did we say that toll is ‘VATable’ because it’s an essential government service provided, and a government service should not be ‘VATable.’ That is our contention,” explained Recto.

Senate President Juan Ponce Enrile, for his part, said the BIR should review its proposal to tax tollway operations as this has no legal basis.

On Wednesday, former Nueva Ecija 1st Distric Rep. Renato Diaz and former Trade and Industry assistant secretary Aurora Timbol filed a petition before the Supreme Court to stop the imposition of the VAT on toll.

Citing the case of Manila International Airport Authority vs. Court of Tax Appeals, City of Parańaque et al, the petitioners said the court had ruled that toll fees are “user’s tax.”

Therefore, the imposition of VAT on a user’s tax is, in effect, imposing a tax on a tax, and not a tax on sale of services, they added.

Consumer and transport groups have vowed to block the new tax measure, which, they warned, could jack up fares and prices of goods.

BIR Chief Henares comes to the aid of P-Noy by stating that the VAT imposition on the SLEX toll rates was not P. Noys idea .

MANILA, Philippines – Internal Revenue chief Kim Henares clarified Friday that the idea of imposing value-added tax (VAT) on toll fees did not come from President Benigno “Noynoy” Aquino III.

“Wala ho siyang iniuutos sa amin. Ang utos lang niya nang italaga niya ako as commissioner ng Bureau of Internal Revenue (BIR) ay ipatupad ang batas (He did not order us [to impose VAT on toll]. What he told me when he appointed me as commissioner of the BIR is to implement the law),” Henares told ABS-CBN’s morning show, “Umagang Kay Ganda (UKG).”

She said that the BIR is merely trying to make tax administration efficient, since President Aquino has promised not to impose new taxes despite the national government’s dwindling funds.

Henares reiterated that one of the intents of Republic Act No. 9337 or the new tax law, which amends several sections of the national Internal Revenue Code of 1997, is to impose VAT on toll.

The fact of the matter is, the buck stops with the Pres and by saying “YES” or “NO” he puts his personal seal of approval on the measure based on his personal understanding of the issues at hand. As Aquino himself said, he will listen to other people’s advice but in the end, the decision will be his to make.

Second, how can levying VAT on SLEX tolls not be construed as new taxes or new rate hike?

What does it really mean to increase tax collection efficiency? What in the world was Henares thinking? Did she even bother to read Aquino’s speech on increasing tax collection efficiency? Oh gawds – it’s so Pinoy. To increase tax collection efficiency, go to SLEX Tollways because they collect tolls efficiently. 😆

Unraveling The Myth of Aquino’s Honesty

Somebody needs to remind Aquino about his promise of no new taxes, no tax rate hikes. Aquino didn’t inherit the problem – he applied for the job! And, deciding on taxes comes with the job. If lower taxes is part of his “vision to transform our country” – thus far it seems Aquino’s vision of lower taxes does not seem to jive with his administrations current action of  increasing sin taxes and VAT hikes on SLEX. :mrgreen:

P. Noy Breaks Campaign Promise

Isn’t that lying? Isn’t that being dishonest? So here comes the candidate of honesty and truth lying about no new taxes in broad daylight.

If you entertain ideas that thinking is tiresome, try stupidity – it’s quite expensive. Take that Aquino supporters – you all been had – you will pay HIGHER TAXES, HIGHER UTILITY RATES. 😆

Schadenfreude – PRICELESS! 😆

From → Politics

46 Comments
  1. I find it amusing that even his LP kuya Frank Drilon correctly recognizes the VAT-on-toll as a tax on a tax. And judging from the comments of this Henares character, it seems that the Retarded Sock Monkey has spent a lot of time making sure he doesn’t recruit anyone smarter than he is to his administration.

    Enjoy your brownouts, basic commodity shortages, and coup attempts, kids. They’re not far off now.

  2. Ryan Bosco permalink

    I never liked the way Noynoy spoke. Nor his sister and his Aunt Tessie, and his uncle Butz. They all seem to just talk non-sense at lightning speed with no tact. Almost trying to be like Ninoy.

    My God, I never thought I’d say this but I’ve had it with the Aquinos. I miss the Marcoses. At least that family screws up with class.

    Bong Bong 2016!

    Yo, Ferdinand Jr. Start hitting the gym, get a youthful clean haircut, a bit of a voice lesson and do your job in the Senate….YOU’RE A SURE WINNER 6 YEARS FROM NOW.

  3. Hyden Toro permalink

    Where can you find an honest politician in the Philippines? Noynoy Aquino is a product of the existing political system. Would you believe that he will fulfill his promises?

  4. Pssst… put this on the Noynoy Truth-o-meter… hehe

  5. Netornit permalink

    Not related to the Blog but the quote was too beautiful not to share!

    “The change of power in the Philippines was no boost for democracy because it was done outside the constitution” -Lee Kuan Yew

  6. lalala permalink

    susunod na ang kuryente, tubig etc….

    panong hindi ba naman eh BFF si noynoy sa Makati Business Club. Meron nga mga members ng MBC nasa gabinete eh IMBA

    cyempre pag humingi ang MBC ng increase sa mga bayarin, makakatanggi ba si PNOY sa mga BFF nyah?

  7. UP nn grad permalink

    Another campaign-promise/SONA issue soon to be broken —- Pilipinas will import rice from Vietnam or Thailand in next 6 months.
    —————————
    MANILA, Philippines—The government might have to import rice as the dry spell caused by the El Niño phenomenon reduced domestic rice production by about 10 percent in the first half of the year, the Department of Agriculture (DA) said Monday. Agriculture Secretary Proceso Alcala said 6.6-million metric tons of rice were produced in the first half of 2010 compared to the 7.3-million MT produced in the same period last year.

    The country may have to🙄 import rice this year due to the dismal rice output, he said. According to DA officials, the drought delayed the planting of rice in the provinces, which led to the production slump.

    With the losses in the first semester of 2010, Alcala said it would be impossible to reach the rice production target of 17.4-million MT for this year.

    “For sure, we won’t be able to meet (it),” he said. But should the DA call for rice imports, it would have to be just half🙄 of the 2010 imports, Alcala said.

  8. It’s either we need taxes or we don’t, make up your mind, Noy. Campaign’s over anyway.

    I’ve been doing some thinking (in a PNoy sense of the word) and came up with these thoughts:

    I think Noy’s secret strategy is flipflop his way to best-ever SWS/Pulse Asia/ The Buzz ratings* with the economy in ruin. Come to think of it, with his communications team in place, they can rack up his errors and let him shoot these as winners. In the end, the Pinoys will get it right smack up their arses from the P-Noy with them smiling and begging for more.

    Think of it:

    1. Noy says, “No new taxes.”
    2. Noy says, “I think some taxes are good.”
    3. The people say, “Whoa! You said no new taxes.”
    4. The BIR says, “Hey, wait! It wasn’t Noy’s idea. We’re just doing our job.”
    5. The people say, “Ahhh…”
    6. Noy thinks and will say, “Whew…See, I’m still honest.”
    7. a. Some people will say, “Ulul!” (about 1/50 of ABS-CBN viewers, 0 from The Buzz viewers)
    7. b. Some people will say, “Galeng mu tlga. jejeje.”

    It’s a conspiracy, I tell you. A conspiracy!😆

    Goodness, Noy must’ve taken into heart what dear old Jerry Lee Lewis supposedly said: “If I’m going to hell, I’m going to play the piano!”

    *population outside the AP universe.

  9. Shaddap permalink

    Hyden Toro: “Noynoy Aquino is a product of the existing political system.”

    – perhaps now you realize that there is a need to change the “existing political system” so that it ceases to create more Noynoy Aquinos (and Erap Estradas).

  10. Shaddap permalink

    Jerry Lee Lewis (Great balls of Fire) happens to be the cousin of Jimmy Swaggart (sex scandal Televangelist)!

  11. Jack permalink

    I think politicians all over the world are wolf in sheep’s clothing put in place by the mafia families to fulfill an agenda. All one has to do is simply things not complicate it.

    Just few things can make PH a developed country in no time…Liberalize the economy fully 100% as mentioned by bong, raise the minimum wage progressively according to GDP. Thats it, everyone will get a share of the growth, everyone will be part of the economy.

    No country has achieved growth by raising taxes. Taxes are just draconian code which were used by roman empire, against growth only for control.

  12. I thought that people or some disrespected government official or the mass of people will find the stupidity of Noynoy… But, I was wrong. Its Noynoy who’s pulling out all the stops to see to everyone that he’s as stupid as a retarded lobotomized zombie who can only think of hitting himself in front of a wall.

    The normality of what we are doing… And that these SLACKERS around our country should put their buts to work and let money circulate as it is… Then the country will progress!

  13. Odette C.Cruz permalink

    It was premature to promise no new taxes will be imposed during his term because no one can predict the fiscal situation during the period. The conservative approach should be to prepare for the worst scenario of having a fiscal crisis and to consider the use of all available means to address the crisis, the easiest is to impose new taxes or implement another EVAT. Even a neophyte economist would know this.

  14. Why not follow Gordon’s idea and tax texting instead? Problem with taxing tollways is that it would cause a domino effect and will raise the prices of other commodities, since everything in pinas needs to be hauled by trucks. At least with tax on text, nobody will be gravely affected, except maybe for people who are text addicts, or those marketing companies who advertise using text messages. Sin taxes will also be good. I don’t care if they increase prices of tobacco and alcohol to 500%, that way people will think twice before they poison their bodies and people around them. This will even be good for our budget on health care as there will be fewer cases of alcohol induced cirrhosis and tobacco related diseases.

  15. ‘Di lang iyan. Talk about the no-travel-abroad posturing of President Noynoy during the campaign period just to malign the former president’s travels and get votes in the process. So pre-school.

  16. jemon permalink

    In fairness to PNoy, the VAT on tolls is not technically a new tax. It is just an implementation of an already existing tax law. Now the sin tax is another thing.. Even if its intention is to discourage people from smoking, it is still a new tax and therefore runs against the campaign promise.

  17. Hyden Toro permalink

    Even if you change the political system; if the people who are part of the system are not changed. No Real Change will take place. People who are in Politics are the real ones giving us the problems. The political system is just an auxilliary factor. The is what I believe. It will always be.

    Who will not want change? We all want change…If I would just have a Magic Wand to make these people disapprear in a second; I would wave my Magic Wand. On the other hand, we have to live with what we got; even an imbecile President…

  18. Jay permalink

    Thing is it would be great to know what projects would come out of taxing.

    As of the SIN tax, I’ve thought of that long ago but in terms of the impact you mention, part of the brutality of western capitalism is their ability to make profit out of pain. A tax on these items doesn’t guarantee people won’t curb their spending on alcohol and cigarettes completely. If anything it is a testament of how much people would pay for their vices. Because ultimately you save more money when you don’t spend at all on it.

  19. Jay permalink

    The irony is this is coming from the president, who apparently had experience in the senate as a fiscalizer,, which I am surprised no one no is calling him on that expertise anymore. So all these issues regarding tax and the economy should not be surprising to him or anyone. Looks like everyone else should feel shameful since he’s fooled everyone twice, at least those still gullible enough.

  20. I want more taxes.:mrgreen: A successful country has a lot of taxes, except for some like Japan, Switzerland, Liechtenstein and rich, oil countries.

    I am willing to pay for a solidarity tax to uplift the condition of the poor. Germany imposed solidarity tax (1% of the income tax) to its citizens to finance the recovery of the former East Germany. The Germans did it in 1989, after the West and East German unity.

    Force the Oligarchs and the rich families to pay higher income and luxury taxes. Impose taxes even on the poor. Perhaps many of them will learn to plan their families and reduce their number of children. Let everyone pay to become responsible citizens. Impose penalties to those who throw garbage in the streets, to jaywalkers, reckless drivers, etc. The best way to discipline a society is to make them pay. If they do not want and cannot pay, they will automatically follow the norms.

    Most of the European countries has VAT reaching up to 25% (Sweden, Norway, Denmark, Hungary). Lucky Japan with its 5%?. (Attention please, Miriam?) Here is a link to see the differences.

    http://www.linker.ch/eigenlink/mehrwertsteuer_deutschland.htm

    I am NOT willing to pay more taxes though when politicians will only make themselves rich from levies.

  21. ulong pare permalink

    … daaang

    @mel… i want to be the flipland taxman/collector… millionaire in no time…:mrgreen:

  22. anonymous bosch permalink

    Breaking campaign promises? It doesn’t matter anymore, the majority do that to the point that I consider any campaign promise made is something that I will count out of the list of the things he would do should he win the elections. In short, campaign promises should be taken by its name: a promise valid only during a campaign.

  23. UP nn grad permalink

    Doing a Bush-the-elder —– breaking a promise😕 — is super-okay😆 for Pilipinas since Pilipinas presidents do not➡ run for re-elections.

  24. killem permalink

    technically, pnoy does not imposed new tax or tax hike, he just implement the existing provision of RVAT law..

    with regards to the sin tax, it is not yet a law, so why cry wolf already???

  25. I thought Doing a Bush was doing the “bllleeeaauuuurrrggghhh” thing.😆

    Yeah, the one term only thing is a problem. It’s been cited by Yuko Kasuya in Presidential Bandwagon as the main reason why so many candidates run in each presidential election – everyone’s scrambling for a post that the incumbent cannot retake, whereas if an incumbent can run again, other parties will be daunted to run against them because of the political machinery already established by the incumbent, among other reasons.

  26. If he was serious on his promise on not having new taxes, he would not even “contemplate” or “favor” having a sin tax. Just mentioning his intention already hints to breaking the promise.

    Even if one tax law was passed before his regime, why implement it now, after his promise? That is very bad timing.

  27. killem permalink

    why?implement it now?for simple reason he promise not to create new taxes, so he just implement the full force of the RVAT…..besides, he did promise to plug the loophole in the tax system…

  28. Implementing or finally enforcing the tax after a time that he promised no new taxes has the semblance of introducing a new tax. Besides, the public does not seem well-informed of this tax. I didn’t know about it. So it feels like a new tax. But then again, this is debatable.

    Verbalizing an intention to introduce new taxes is still tantamount to breaking his promise. He should’ve kept his trap shut.

  29. anonymous bosch permalink

    “Doing a Bush-the-elder —– breaking a promise — is super-okay for Pilipinas since Pilipinas president is currently Noynoy Aquino”

    Fixed for ya. They cry foul and make such a huge fuss every nth time GMA broke ther promises, where are those now that Noynoy’s pulling a fast one?

  30. killem permalink

    VAT is already exsisting since 1987, its nothing new, what the bir opted to do is apply it universally…

    now, on the issue wether not it is applicable to toll fees? thats a debatable aspect…which the SC should decide… but one thing is clear its not a tax on tax!

  31. Apparently there are groups which have pointed out that tolls are actually regressive taxes. increasing the rate of a regressive tax is a tax hike.

  32. given that:

    a) the current tax revenue is based on the existing implementation
    b) expanding the implementation from its current scope to the full scope increases the tax burden
    c) then full implementation means expanded taxes – more taxes than the current amount being paid. The additional amounts added to an existing amount isn’t exactly OLD – that’s a NEW amount being added on the existing amount.

    His promise to plug the loophole was to plug the leakages that allow corruption to thrive – all over the country.For example – upgrading the tax declaration/assessment/audit/payment processes have a lot of gaps that provide opportunities for fixers – nationwide.

  33. ulong pare permalink

    … daaaang

    … “plugging the TAXHOLES” is like plugging the traposakals, administration thieves, kamag-anaks, et al AZZHOLES…:mrgreen:

    … flips are conservatives >>> CON-SERV-A-THIEVES… hay naku… :mrgreen:

    … not gonna happen…

  34. killem permalink

    toll are not taxes! tolls are levied because of ownership., whereas taxes are levied by reason of sovereign authority! please be guided accordingly.

  35. @killem

    I think everyone knows that! The main thing is here:

    “Never did we say that toll is ‘VATable’ because it’s an essential government service provided, and a government service should not be ‘VATable.’ That is our contention,” explained Recto.

    And please be reminded that PNoy promised no new taxes and no tax rate hikes.

  36. here’s a site which has more experience with tolls than Pinoys😆

    http://www.tollscreategridlock.org/true-cost-of-toll-roads.html

    Tolls vs. Taxes – What’s The Difference?
    Sally Baptiste, May 10, 2005

    Most people would agree that our highway infrastructure is in bad shape and in need of serious repairs and improvements, but there is much disagreement as to how we should we pay for them. The question of “tolls vs. taxes” is always part of the debate.

    But let’s be honest – a toll is a tax! “Toll” is just another word for Tax. As I have defined it, a tax is any money paid to a governmental agency for providing a service to the public that cannot easily or competitively be provided by the private sector AND the service is required to protect and promote the general welfare of the people.

    So, when talking about the cost of transportation, we need address the public need and compare toll taxes to other transportation taxes. To do this, we need to answer a couple of key questions:

    1. Does the public service promote the general welfare of all Americans? In this case the highway system is the public service being provided.

    2. Are tolls the most efficient and effective way to raise public revenues for this public service? In this case toll fees vs. other transportation taxes.

    3. Are tolls a regressive tax? Who pays the most for this tax?

    The answers are very simple:

    1. Yes. The highway system easily promotes the general welfare of all Americans. There can be absolutely no doubt about this fact. The fact is the highway system is critical to our economy and our quality of life. Everyone (including individuals that don’t drive) is affected by our highway system. It is also important to note that the highway system is not a service that can be provided in a competitive market place. How many expressways can be built in one community? We must limit and properly manage the construction of our highway infrastructure.

    2. No. Toll taxes are the most expensive and ineffective transportation tax. The costs of toll collection systems are substantial. These costs include all standard overhead costs such as salaries & benefits, administrative costs, operational costs, etc, etc. Then on top of that, the excessive costs of electronic collection systems, toll booths and toll collector wages. And we haven’t even begun to pay for the highway! Now compare the cost of collecting additional transportation revenues through existing revenue streams. For example, the gas tax. The average toll rate is 15 cents per mile. This is equivalent to a $3 per gallon gas tax (these figures were taken from http://www.cashtrap.us/why.htm). Additionally, toll taxes create more gridlock by not allowing/affording everyone access to the expressway system. This means more gridlock on secondary roads. More gridlock means more pollution. Thus, the cost of toll roads cannot be limited to the actual highway construction costs. The public would be better served for a lot less money by increasing highway revenues through registration fees, gas taxes, tire taxes and licensing fees. The profit margin from these sources is much greater and there is no need for any new governmental agencies (aka bureaucracies). For example, a small tax increase in the registration fee that is dedicated to highways would go a long way to raising the necessary highway revenues. Based on FL 2002-2003 figures, increasing the registration fees for passenger cars and truck by $10 would increase highway funding by $131,832,620 in just one year. That does not include all other types of highway vehicles (trailers, motorcycles, RVs, etc.). There are basically no new costs incurred for this increased highway funding. Thus, a net profit/increase in highway funding. At the same time, this option allows full utilization of the expressway system and reduces gridlock. It is also important to note that these taxes are all “user fees”. Those who do not drive or use the highways are not taxed. Less taxes = more mobility. There are other tax revenue streams such as tourist taxes, car rental taxes, car sales taxes that would also provide better options than toll taxes. These methods of tax collection have virtually no new or increased collection costs associated to them because they use the existing tax collection methods without the substantial overhead like the costs of operating multiple “Expressway Authorities”. If the real goal is improved mobility for the least amount of tax dollars than toll roads are not the answer. The truth is Tolls Create Gridlock! Tolls Limit Access to the Expressway System!

    3. Yes. Toll taxes are a very regressive tax. Lower income commuters cannot afford the toll taxes. Middle income commuters lose disposable income that could have been spent in the local economy. Thus, reducing other tax revenues and taking money out of the local economy. In Central Florida, it is not uncommon for commuters to spend $80-$100 per month in toll taxes. This is a significant amount of money for lower/middle income commuters and families. Additionally, toll taxes increase the cost of living by increasing the cost of transporting goods and services. Small businesses are also hurt by this regressive tax. No matter how you do the math, toll taxes hurt the lower/middle class the most and they take money out of the local economy.

    These are not the only reason that toll taxes are wrong, but in my opinion, these reasons represent the key problems with toll taxes. There are better options to raise revenues for highways without limiting access to the highway system. In my opinion the best option is the option that does the most to improve mobility for the least cost. Everyone benefits from an efficient and effective transportation system.

    Everyone understands that roads are not free. Our roads have never been free. The motorist has always paid for the roads. The real transportation problem we face today is in the area of accountability by elected spenders who have mismanaged our transportation tax dollars for many years. Our transportation policies are in big need of reform. Unfortunately, reform can only occur when our elected leaders focus on real solutions instead of new tax revenue streams. Please think about the following transportation facts when you pay that toll:

    TOLLS CREATE GRIDLOCK!
    TOLLS LIMIT ACCESS TO EXPRESSWAYS,
    THUS CREATING MORE GRIDLOCK!
    LIMITED ACCESS MEANS MORE
    CONGESTION/GRIDLOCK ON SECONDARY ROADS.
    TOLLS ARE A DOUBLE TAXATION and
    EQUATE TO ABOUT $3 PER GALLON GAS TAX!

    For more information on transportation and toll abuse, please visit my website at http://www.tollscreategridlock.org or email me at Sally@tollscreategridlock.org or info@tollscreategridlock.org.

  37. GabbyD permalink

    the key part of the article u shared:

    ” As I have defined it, a tax is any money paid to a governmental agency for providing a service to the public that cannot easily or competitively be provided by the private sector AND the service is required to protect and promote the general welfare of the people.”

    one part of the definition doesnt hold — the hiways are provided privately.

  38. @gabbyd – i agree we disagree on the definitions – my take is that every time I pay for a public convenience – is a tax.

  39. does the toll company own the road? or is it collecting money for developing the road (which the government still owns)?

    note that you are still paying taxes and that the opening of the tollway has not decreased your taxes – and you are paying again for the development of a public road – that supposedly you already paid for as a taxpayer – double taxation.

  40. UP nn grad permalink

    If it costs P50-pesos to build SLEX and Pilipinas only has P30.00 “cash-on-hand”, SLEX doesn’t😕 get built. Unless BongV hands over P20 so SLEX gets built. BongV can donate all of the P20 and ten monuments😉 are built to applaud BongV’s generosity. Or BongV says➡ “this is business!!” and he he gives P20 as long in exchange for getting P2 back each year for the next 15 years.

  41. Indolent Indio Circa 1521 permalink

    12% VAT should be eliminated. Rubber-Stamp-President-to-the-Oligarchs were against it. He should eliminate it.

  42. Uncle Pinoy permalink

    Traditional politicians will always want to raise taxes because that’s where they get their salaries, bonuses, and kickbacks. And if we continue to clamor for better government services, how else would Noynoy pay for that?

    Those who shared Noynoy’s belief that he can (and will) stop corruption are as innocent and naive as he is. Noynoy is sadly mistaken if thinks that the lowly government clerk will not look for creative ways to augment his/her Php6,000 a month salary.

    If we do not want our taxes raised, then we should stop expanding government. Better yet we should shrink government because we have too many people in the public payroll. I’ve always believed, for instance, that Congress is too expensive to maintain. We don’t need 250-plus lawmakers who cost us Php20 bil annually in pork barrels ALONE when our annual deficit is Php290 bil. There are many other areas where we can cut cost. But the issue is do our politicians really want to cut cost, or do they just want to perpetuate their gravy train (i.e. taxes)?

    Loose cannon Miriam explains it well:

    http://pinoybusiness.org/2009/05/22/government-employees-salary-increase-approved-by-congress/

  43. I actually don’t mind the sin taxes.

  44. RISEUP permalink

    My Reaction to the imports from Vietnam and Thailand I would say that the IRRI(International Rice Research institute) did a pretty lousy job on trying to help the Philippines of the shortage of grains. Sure they helped the other countries but how about the Philippines? Its not right to prioritize other countries first. Like come on! The Philippines is one of the countries to have a shortage on grains and they help the other foreign countries.

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  1. Tweets that mention VAT, SLEX Toll, “Sin Taxes”: “Honest” Aquino Breaks Another Campaign Promise | Anti-Pinoy : World Edition :) -- Topsy.com

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