Wednesday, April 04, 2007

The OR Issue

I am posting here my comment on Walter's blog entry entitled I will demand for an Official Receipt (OR) originally posted at (click the title of this post to follow link to the post in his friendster blog).

It goes...

This is going to be a long comment so bear with me...

I sense a lot of angst in your post, I'm not really sure where it's coming from but just the same I would like to put my head into this whole OR issue of yours.

I'd like to make a comment on a few lines in your post:

" I will demand for an OR at all times. " - I agree with you. And while you are at it, check if what you have in your hands is really an OR and not a Delivery Receipt or a Sales Invoice. Asking for an OR is as much a responsibility as it is an obligation of the consumer.

"...punitive Value Added Tax (VAT) and the E-VAT" - this one I didn't expect to hear from you. VAT and EVAT is relatively the most efficient way of collecting taxes because it is tagged on consumptuon. I do not subscribe to the belief that it is a dagdag pahirap sa mahirap. Our tax laws speak about our financial viability in the world market. Because we are improving in our tax collection and our taxing system, we are able to attract more investors into the country. Last year alone, we were able to collect more taxes, hence more budget for government. By government, I don't only mean our legislators (God knows where they spend it!) but National Government Agencies for the most part. Our government employees are getting their long overdue 10% wage hike because government is collecting more. EVAT is just the additional 2 percent, which in its stricter sense should not be passed on entirely to consumers (as in manufactured goods). I belong to an agency of government which monitors the prices of basic commodities and so far, though the trend is moving up, if not steady, prices have not gone higher that 2 percent on a monthly comparative basis.

"It goes to the business owners’ coffers in forms of “profit” from profit. Which literally means - stolen money!" Businesses are bleeding. People are buying less, scrimping actually, making ends meet. Even businesses are thinking twice before they increase their prices because if they do and demand is inelastic, they have stocks in inventory, creditors to pay and money sleeping in their warehouses. All the increases are due to inevitable fluctuations in the world market: the exchange rate and the cost of crude oil. So it is not just the whim of the businessman to increase his profit. Because the increase is as much a loss to him as to the consumer.

Maybe I am seeing things in a different perspective but I still stand to my belief that yes, indeed, it is the obligation of every customer to demand for an Official Receipt to help its government in its effort to revenue collection. After all, you can't really be expecting anything from government if you are not doing your share.

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