TURNING POINT: Putting an End to Gluttony

NAAWAN, Misamis Oriental (MindaNews / 4 September) — Taxes are the lifeblood of the government.

They are collected from the people, from everybody, from the rich and the poor, the old and the newly born, through various means, but primarily through indirect taxation.

Taxes are of two types: direct and indirect.

Direct, also known as progressive taxes, are collected from individuals proportional to their incomes or according to their capacity to pay; that is, the greater the income, the greater the tax.

While ideal, just, and equitable, it is very difficult, however, to collect progressive taxes on products and services. For instance, if you dine in a fast-food restaurant, the seller needs proof of your income and has to make some computation to determine the amount you have to pay, as well as the accompanying tax. It is tedious and time-consuming. It is even daunting because the queue towards the cashier is quite long and the line may yet grow longer, due to the delay in the cashiering section, which may cause unnecessary disturbances.

The imposition of value-added tax (VAT) on products and services is the prime example of indirect taxation. The VAT on the food you eat in fast-food restaurants eliminates those irritating delays in checking personal documents and in determining the amount to pay for what is purchased.

Sixty percent (60%) of the country’s tax revenue comes from indirect taxation through the VAT.

There is no question that VAT is unjust, but that is what you pay for ease and comfort. Moreover, it facilitates the tax collection of the government and derives funds for social services and infrastructure programs. So, we have to live with it.

The operation of jeepneys, motor cabs, and motorboats that issue no tickets for the fare of their passengers appears to be untaxed. In reality, the government generates funds from such modes of transportation, including air transportation, through various mechanisms, primarily focusing on fuel taxes, fees, and property taxes.

Indeed, taxes are inescapable, and paying them is already considered a way of life.

It is extremely lamentable and disgusting that the billions of pesos that all citizens of the land bestowed to the government as taxes, are gobbled up by a clique of gluttons—the corrupt contractors and government officials in such monstrosity as the flood control projects in Bulacan and other parts of the country, which are either haphazardly constructed using substandard materials, left unfinished or not started at all but reported completed, otherwise known as ghost projects.

The plunder of the people’s wealth in the open in broad daylight is a heinous crime that robs the young of their future. It is unpardonable. It should not repeat. Thus, those responsible should be prosecuted and, if found guilty, should be put to death in accordance with the mandate of our Constitution. (Article III, Section 19).

Congress should not pass laws just to plug loopholes or prevent corrupt practices. It has to revisit the reimposition of the death penalty, to include plunder as a heinous crime.

(MindaViews is the opinion section of MindaNews. William R. Adan, Ph.D., is retired professor and former chancellor of Mindanao State University at Naawan, Misamis Oriental.)