Lawyers urge Congress to amend eVAT Law

Cebu lawyers are urging Congress to amend the controversial Expanded Value Added Tax Law so that it will not greatly affect the poor people.

The officials of the Integrated Bar of the Philippines Cebu City Chapter headed by Alex Tolentino, however, did not specify in their resolution what particular provisions of Republic Act 9337 or the eVAT Law are to be amended. The law is set to be implemented on November 1.

It was former IBP-Cebu City Chapter president Democrito Barcenas who encouraged his fellow lawyers to pass a resolution asking the congressmen to review the controversial eVAT and to make amendments.

Tolentino said over dyLA yesterday that there is a big possibility that the lawyers will also pass on to their clients the E-VAT that the government will collect from them based on their income.

"Pait kaayo, sigurado nga mosaka g'yod ang presyo sa palaliton kon sugdan na pagpatuman ang eVAT, unya walay usbaw sa sweldo sa mga trabahador, (The prices of commodities will increase once eVAT is legal, and there is no increase in the wage of the laborers)" Tolentino said.

Lawyer Paul Oaminal suggested that the IBP hold a general membership meeting to discuss the effects of the impending implementation of the eVAT next month.

Oaminal said that starting next month lawyers' fees may increase by as much as 22 percent because of eVAT. The average P20,000 to P30,000 acceptance fee by lawyers is expected to go up as much as P50,000 to P100,000. The appearance fee of P1,000 to P1,500 is also expected to go up to P2,000 to P2,500 as soon as eVAT is implemented.

The Supreme Court earlier upheld the constitutionality of the eVAT law, described as the cornerstone of the government's efforts to escape a looming fiscal crisis.

The high court said the standby authority provision of RA 9337, which grants the president, upon the recommendation of the secretary of finance, to power to raise the VAT rate from 10 to 12 percent "is not a delegation of power" but a ministerial duty.

The eVAT was touted as the government's biggest revenue-raising measure, intended to balance the budget by 2010.

The eVAT also increased corporate income tax to 35 percent from 32 percent and expanded coverage of the VAT to the oil and airline industry. - Rene U. Borromeo and Fred Languido