Do you think VAT is a valid exercise of power by the government? Give factual basis.

 Yes it is a valid exercise of power since tax can help develop a nation. It is the Filipinos who will
benefit from it. As long as they are not corrupting it and they make sure that they are spending it
well then it’s not a problem. Taxation provides revenue to the government for the maintenance
of public services and infrastructure. Also VAT helps to generate tax revenues to the government
similar to the corporate income tax or the personal income tax. It has the potential for raising
large amounts of revenue at a low tax rate. Through the help of VAT we will have stable revenue
that will provide citizens good service. Just like for example on our highways and transportation.
Transportation infrastructure, the government relies on revenue generated and allocated for
transportation purposes. The revenue dedicated to transportation is referred to as
transportation revenue. Transportation revenue includes taxes and charges (i.e., fees) collected
by the government from transportation and non-transportation-related activities and allocated
to fund transportation programs. However, the value-added tax (VAT) they are imposing on
goods and services should not be excessive in order for the unfortunate to continue to be able to
purchase.

Do you think that the taxes that the citizens are paying be lowered? Take note that when taxes are low,
the government cannot deliver its services to the people well.

 I think no, because taxes help promote economic stability and growth. It plays a big part to our
economy. If for example the government will lower the taxes, it is the citizens that will likely who
will suffer and the country itself because taxes are the primary source of revenue for the
Philippine government. Taxes are spent on infrastructure projects, public services, welfare
programs, services, and as budget of different departments of government. If it will be lowered,
the government will not be able to provide its services to the populace effectively. With that, as
long as the government makes sure that they are spending the taxes well then I think its okay
that it should not be lowered. And without the help of the taxes, the government would have to
borrow a lot more money, and the spending would have to go way down. I know, a lot of people
are complaining why taxes are getting higher, but that’s how it is. When inflation rises, the
nominal amount of such income rises, as does the tax owed on that income, even though the
real value of the income is unchanged.