Tomorrow (or in about a few minutes), could be doomsday. Although for us majority middle income to impoverished Filipinos, it may seem like a scenario straight from the Dark Ages- political turmoil, moral decay and economic crash.

The first two, we have aplenty (we get our daily dose from our fractured government- at both sides of the fence). The latter (God forbid) from the implementation of the additional Vat increase.

But we need the Vat or so they say.

The government would use the new revenues to reduce our the colossal budget deficit and place public finances on a “sustainable footing”. The additional 2% Vat would help lower interest rates for businesses and improve investor confidence in the Philippines, which has been damaged by constant political bickering.

The government anticipates (and we hope) that the impact of the additional 2 percent VAT on local retail prices of all products will be less than 2 percent and would only be about 1 percent for electricity.

If our already bleeding pockets will feel the negative cascading effect of increased consumer goods and services, I am wondering why doesn’t the good performance of the Philippine Peso (Php 52.17 to $ 1 as of January 31) cause any ripple? Or is it just a matter of tangibility?