Friday, May 06, 2005

Bicycle and taxes

Two of the issues that seems to plague Philippine society these days are the proposed Value Added Tax (VAT) schemes and the spiralling cost of gasoline/petrol prices.The price pf gasoline today is a far cry from when I started driving. At that time the price of gas per liter was around 9-12 pesos, I think. At present its around 30 pesos or so depending on the gasoline station. And it seems that it will go higher. Transport fares are also on the rise, followed closely by the cost of goods. And with the imposition of the new VAT...well... this will go higher. Fortunately, I take the train from work. I am just wondering why no one has yet suggested that people take to biking. Well, it might not be surprising given that the streets of Metro Manila lack proper bicycle lanes and are inhabited by a number of motorists who instinctively think pedastrians and bicyclists are targets they can do away with impunity. Such is life. Speaking of taxes, I understand why the government is so hell-bent on imposing the VAT. It boils down to effective tax collection, the present system is so full of loopholes that the salaried individuals and honest businesses end up carrying the burden of taxation . Being a salaried employee and seeing the deduction taken every pay day makes you a little bit frustrated that several individuals and businesses who are earning above the average do not pay taxes. But what is even more frustrating is seeing no action on proposals to increase the exemption or lower income taxes. The tax system is so antiquated the level of exemption is so unrealistic. The cost of living has gone up through the years that the Philippine peso for what its worth does not have the purchasing power it once had. Thus the salary level that was considered comfortable living before is actually covering just the basic necessities. Such is life.


Post a Comment

<< Home