Manny Villar favored E-VAT

Here is the 2005 legislative history of E-VAT( Republic Act 9337 then Senate Bill No. 1950, filed in 13th Congress). Manny Villar consistently voted in favor of E-VAT, on the first, second and third reading. He was one of the conferees with counterparts from House of Representative, and voted for the adoption of the committee report. 

LEGISLATIVE HISTORY OF EXPANDED VALUE ADDED TAX

The Nacionalista Party had warned that Liberal Party standard bearer Sen. Noynoy Aquino and his running mate Sen. Mar Roxas are 'architects of poverty.' This came as Albay Governor Joey Salceda joined the ranks of Liberal Party, bolting the administration Lakas-Kampi-CMD coalition. They also accused that an Aquino presidency is likely to raise taxes, this even as Aquino had earlier vowed not to introduce new taxes, and later said, it will be his last resort. Noynoy Aquino also objected to the proposal of Finance Secretary Margarito  Teves to increase E-VAT to 15% from the current 12% calling it the "easy way out." In a Manila Bulletin report, he said: 

“There is a lot of room for our revenue base to grow. Our tax effort has gone down from 17 percent at its peak to a worrisome 13 percent today. If we can only bring this back even to just the 15 percent level, that will translate to P150 billion in additional revenues, which would make a significant dent in cutting our deficit”

In same report,  Noynoy reiterated his position not to impose new taxes during his term. 

Malaya columnist and political analyst Lito Banayo wrote that:

"...Noynoy Aquino along with Chiz Escudero voted against E-VAT. Sure Ralph Recto also joined the LP, but Noynoy in a speech before the Makati Business Club categorically said that he would not impose new taxes, and when Gary Teves pined for a 15 percent E-VAT, Aquino immediately said "No way!".

On the other hand, it was Sen. Manny Villar who voted in favor of increasing taxes in 2005, voting and even pushing for the Expanded Value Added Tax which some analysts view as regressive or anti-poor, as it tends to impose on those who spend more on "vat-able" items, a demographic significantly comprised by lower- middle class and the poor. The administration under President Gloria Arroyo heavily pushed for this new taxes, amidst report of massive corruption in its ranks, costing the government in revenue collection.



Aquino  believes that “[we] can collect more taxes at the BIR and higher duties at Customs if we become more serious in curbing and punishing tax evasion and smuggling”