Assessment of the stability of the RP government decision to collect VAT on toll fees.

Last October 1, 2011, the government started to implement 12% value added tax on toll fees. This issue was a hot topic during that time because of the sudden law that was implemented which is said to have is no legal basis since toll fee is tax itself. Personally, we both have positive and negative thought about this.

Many groups and Filipinos are not satisfied with this RP government collection of VAT on toll fees. There are a lot of questions that keep on playing in their minds, like where do these collections go? Why there is a need to add VAT to toll fees? Isn’t there are many investors in our country and some powerful and rich government officials why not ask them to pay their taxes? Isn’t just another way to get more money from everyone? You can’t blame most of the Filipinos why they are protesting about this decision. Because as we all know, we are experiencing economic hardship, 12% VAT to toll would only raise the cost of basic goods or commodities being transported through expressways. This will be a burden to poor Filipino people. “Mahirap mabuhay ngayon” – we always hear this line. This is true, because we’re living in a country that does not have a stable economy or should we say a good government though. 


VAT is regressive because it doesn’t distinguish between rich and poor. It similarly taxes everybody who buys or uses a certain product or service, regardless of whether the amount of tax creates a big dent into their pocket or hardly a dent for those who have thick wads of money. We are all affected with this tax collection.

That’s why we disagree to the implementation because first of all it will be unfair, unfair for those who travel the north and south Luzon expressway. Especially the public transport drivers. We all know that they get their income through driving. If a driver travel the NLEX or SLEX a day, imagine how much he will pay for vat in a month. Second is, we’re having doubt if the tax collected will go to their respective purposes. If the tax that will be collected will be the cause for corruption, we rather say no to vat implemented on toll fees. We think it is bad enough that the Philippine government has been ceding to the private sector the operation of vital public services such as major highways, turning its operation into a business instead of a public service.

On the other hand, we’re going to agree to it if their real purpose on implementing the tax is to build and improve the public roads and highways in expressways. Because it will be a great benefit for all of us for it will be easier and safer for us to travel. It is such a convenience to us.

We think they should clearly state, where they’re really going to use the collections.

In a positive way, our government is searching for solutions to the problems that our country is facing off.  We’re hoping that this VAT collection to toll will increase the revenue of Philippine government and will not increase the income of our government officials.

We don’t know the effects of implantation of tax on toll fees but if this will help us to promote and improve our country, it’s our duty to follow the law and help the government to introduce the new Philippines to the world.