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FOURTEENTH CONGRESS OF THE 
) 
First Regular Session 
1 
REPUBLIC OF THE PHILIPPINES 
) 
f:, li ' i  
SENATE 
Introduced by Senator Antonio F. Trillanes IV 
EXPLANATORYNOTE 
When the Expanded Value Added Tax (EVAT) law was promulgated in the 
latter part of 2005, it has alarmed every concerned sector due to its repercussion 
on the price of basic commodities. It was during the same year where the 
widespread Asian economic crisis was causing a direct hit on the economic 
survival of Filipinos particularly the poor where financial hardships were evident. 
The immediate passage of the EVAT law was prioritized during the last 
Congress in order to bolster the revenue of the government to narrow down the 
widening Consolidated Public Sector Deficit (CPSD) that reached P200 billion not 
to mention the $600 billion NAPOCOR debt which is badly hurting the economy. 
In order to do so, the Department of Finance is eyeing to collect somewhere 
between P50 billion to P60 billion each month to attain a balanced budget by 
2009. 
However, after almost three years of implementation of the EVAT law, the 
national government is still short of its monthly collection particularly from this tax 
on sales. To give a more concrete example, it has been reported by the BIR that 
as of June 27, 2007; taxes collected for the month amounted to only P36.9 
billion, which is P I  9.62 billion lower than the target collection of P56.52 billion for 
June. 
Moreover, said tax collections is actually a P10.92 billion drop as 
compared to P47.82 billion during the same period of last year. The recorded 
P307.44 billion aggregate collection from January to June, 2007; is apparently 
significantly lower than the targeted P352.69-billion for the period. 
It is evident therefore that the enforcement of the EVAT which provides 
the payment of 12% tax on sales is ineffective in narrowing the CPSD. Worse, it 
became an addition additional financial burden to the already cash-strapped 
public. 
This bill which proposes to repeal the EVAT law is envisioned to help the 
consumers to make both ends meet. The government should instead look for 
other means to improve financial position of the country that has lesser or no 
effect at all to the people. 
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Policy makers should implant measures to prevent a decline in the 
government's income by being relentless in its revenue collections like the 
pursuit of tax evaders and technical smugglers, and rationalizing the granting of 
fiscal incentives. 
In addition, the national government should undergo fiscal reforms by 
eradicating corruption and drastically cutting down on unnecessary spending 
such as junkets, lavish celebrations, out-of-town meetings, etc. 
This representation firmly believes that if only the government has the 
political will towards economic progress, the aforementioned twin-alternative 
revenue programs to Plug Revenue Leakages and Rationalize Governmenf 
Spending, will easily be doable and be more than enough to duplicate if not 
surpass the revenues given-up if the EVAT law will be totally scrapped. 
Filipino citizens should not pay for the inefficiencies of its government 
I am urging my colleagues to heed the call of the people and take 
cognizant of the interest of the greater majority by supporting the immediate 
passage of this piece of legislation. 
Sen at o r 
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FOURTEENTH CONGRESS OF THE 
) 
First Regular Session 
1 
REPUBLIC OF THE PHILIPPINES 
) 
/:ii:- 1 3 
i /  i,, ,/ 
f\i.XE'l/EC. I"i' : 
SENATE 
Introduced bv Senator Antonio F. Trillanes IV 
AN ACT 
REPEALING REPUBLIC ACT NUMBERED 9337, OTHERWISE 
KNOWN AS EXPANDED VALUE ADDED TAX (EVAT) 
Be it enacted by the Senate and House of Representatives of 
the Philippines in Congress Assembled: 
..,.. 
SECTION 1. 
Any 
provision 
of 
law 
to 
the 
contrary 
notwithstanding, Republic Act Numbered 9337 entitled "An Act Amending 
Sections27, 28, 34, 106, 107, 108, 109, 110, 111, 112, 113, 114, 116, 117, 
119, 121, 148, 151, 236, 237 and 288 of the National Internal Revenue 
Code of 1997, as amended, and for other purposes" is hereby repealed. 
SEC. 2. 
This Act shall take effect fifteen (15) days following its 
publication in two (2) national newspapers of general circulation in the 
Philippines. 
Approved, 
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