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Cordillera health workers hit EVAT

Calls for scrapping of EVAT

BAGUIO CITY (Oct. 20) — The Supreme Court (SC) declared the legality of the expanded-value added tax (EVAT) law but health workers in the Cordillera region pointed out that the act facilitated the increase of the prices of medicines and health services which would be beyond the reach of ordinary citizens now confronting the worst economic crisis.

The remedy to relieve the people from poverty and neglect of health services would be to scrap the EVAT law, or Republic Act 9337, claimed Dr. Ana Marie Leung, executive director of the Community Health, Education, Services and Training in the Cordillera Region (CHESTCORE).

“The EVAT law institutionalizes high prices of medicines, supplies and services, as with other goods and services,” adds Dr. Leung, who was with health workers in a medical mission in Bauko, Mountain Province when interviewed by NORDIS.

EVAT coverage

EVAT now taxes 10 percent on goods and services exempted by the old VAT law which includes medical and legal services; non-food and agricultural products such as cotton and cotton seeds; literary works and musical compositions; electricity and petroleum; electric cooperatives; coal, natural gas and indigenous fuel; domestic transport of passengers by air and sea; highway toll fees, among others.

The law also grants power to the president to increase the VAT percentage to 12 percent.

Poor the most hit

The professional fees, including doctor fees covered by the expanded VAT, are going to be an additional burden to patients as the nature of VAT passes the tax to end consumers. This would further the miseries of people in dire need of medical attention.

CHESTCORE claimed that an average hospital bill is three times the monthly wage of a working citizen. A short stay at the hospital costs a minimum of P10,000, others claimed. Other researchers claimed that eight (8) out 10 Filipinos are unable to afford health services. These figures will increase as medical services will become more expensive, added a community health worker, as the government budget for every citizen per day is just thirty five centavos.

In the Cordillera, study shows that 80 to 90 percent of the population prefer public hospitals, as they can still afford the bills.

CHESTCORE studied the case of the Benguet General Hospital where 90% of their patients are indigenous peoples from the Cordillera where 51% are full indigents and 26% pay partially. Since 2001 when it was transformed into an “economic enterprise” or devolved to the local government, it has imposed “payments” even to poor patients to survive. And they will be hit by high prices of medicines and health services due to the expanded VAT.

EVAT not for wage increase

Neither will the EVAT go to health workers as it will be remitted to the Bureau of Internal Revenue, a health worker claims. “We (health workers) will be affected by the taxable goods and services under the EVAT but our salaries will not increase,” she added.

“The EVAT will be another burden even for health workers,” adds Dr. Leung, “which would further push them to seek employment abroad.”

Records showed that for the past four years, 51,000 Filipino nurses already went abroad for employment. The ratio for one nurse is 80 patients compared to the ideal ratio of one nurse to 15 patients. Seven (7) out of 10 doctors are taking up nursing for employment overseas.

Anti-EVAT groupss hit the SC for declaring the tax law legal as they claimed the tax collected will be used to pay the Philippine foreign debt, which had not benefited the Filipino people. # Arthur L. Allad-iw for NORDIS

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