The militant Kilusang Magbubukid ng Pilipinas (KMP), expressed doubts on the initial euphoria experienced by Malacanang and investors a day after the implementation of the VAT. 
According to Danilo “Ka Daning” Ramos, secretary general of KMP, “as expected it is Malacanang and the investors who would really be happy with the E-VAT implementation because they are not the ones who are going to shoulder it. In fact, they are going to make a large profit because of the E-VAT, by passing this tax on us. The prices of basic commodities have now started to increase, we are now monitoring the price of farm inputs to expose the Palace lie that we would not be affected by E-VAT”

Prices of Palay inputs

TAON ABONO (Complete) HERBICIDE BILOCIDE PESTISIDYO
1994/1995 250.00   
1998 320.00-360.00 560.00 680 500.00-900.00
2001 400.00-500.00 1,002.00 1200 700.00-1,000.00
 Source: KASAMA-TK

“In our computations a 20% increase would be added to products and services because of the EVAT. Let us take urea for example which is P875 per sack before the EVAT, P875 x 0.20= P175 + P875 original price=P1050 per sack of urea when VAT is added. Even if we follow the Department of Trade and Industry (DTI) formula saying that there would just be a 5% increase in prices, P875 x 0.05= P43.75 + P875 =P918 per sack. All products, whether agricultural or industrial need ingredients and other inputs that are VAT-able and they cannot exist in a vacuum, which mean price increases on all products. This is too much for us farmers, who can barely buy food for our families. It is very ironic that we are the ones feeding the nation, while we are the ones going hungry,” ended the peasant leader. # # #
 

KMP - 3 November 2005