Double taxation and costs we shouldn’t be paying for
Architect JM de Jesus, on Instagram, put to words a reality we all know too well: that we are being taxed twice. In addition to the personal costs we put into our private spaces, we are also accounting for expenses that our taxes should cover to begin with. “When your home budget is consumed by public failures, architecture stops being about comfort; it becomes about defense and backup systems,” he says.
Solar panels, generators, CCTV cameras, water tanks, and booster pumps are becoming home necessities amid inconsistent public services. Not to mention, how we search for new homes with “flood-free” listings is directly shaped by governmental failures in implementing flood control initiatives.
And if you already live in a flood-prone area, one stroll around your neighborhood reveals several properties with raised garages and slopes—all proving how we’ve taken flood control into our own hands. That is, if you could pay for it.
Meanwhile, on the road, ride-hailing apps such as Grab, InDrive, and Angkas have also helped curb commuter frustrations with our insufficient public transportation systems and car-centric infrastructure—but have unfortunately added to one’s monthly costs.
All that on top of the taxes we’re already paying. So what are they really for at this point?
Where’s our money going?
Our 12 percent Value Added Tax (VAT) is the highest in Southeast Asia, compared to 10 percent in Vietnam, 9 percent in Singapore, and 7 percent in Thailand. This was raised from 10 percent in 2005 under Republic Act 9337 to supplement tax revenue and further support government projects and initiatives.
Meanwhile, travel tax, which is unique to the Philippines in the region, is an added charge for international flights, starting with P1,620 for economy and up to P2,700 for first class passengers. According to Republic Act No. 9593, 50 percent of travel tax earnings go to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), while 40 percent is allotted to the Commission on Higher Education (CHED). Meanwhile, the remaining 10 percent is reserved for the National Commission for Culture and Arts (NCCA).
And yet, while these added collections are being conducted to fund programs supposedly for the benefit of the general public, all we’re seeing are the pockets our hard-earned cash is going into.
Between public demand and private responsibility
When the solution to public problems has simply been to amass personal wealth or rely on insufficient government subsidies and allowances to become unaffected by these issues, now more than ever, we should recognize that taxes aren’t a blind obligation, but a social responsibility built on trust.
We don’t establish governments just because we can, but rather on the belief that it will make things easier. We enjoy our rights to safety, expression, and justice, and offer our loyalty, patriotism, and taxes in exchange. And yet, for as long as the Philippine Republic has stood, we have held our end of the bargain, but the same level of respect has rarely been afforded in return.
When we pay for something, and we don’t get the product or service we asked for, we demand our money back or get what we asked for, one way or the other. But unfortunately, expecting anything better from our government is widely seen as idiotic or fruitless.
So again, if we’re expected to everything ourselves, what is the point of our taxes—better yet, what is the point of our government?
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