I'm not an economist, but from what I understand, I can tell that:

1. VAT is a way to tax consumers, because they can't get the big bad ass tax evaders. Taxes, of course, buy guns n' ammo to fight communism, terrorism, poverty, squatters, muslim insurgents and charter change.

2. EVAT means more taxes on consumers, and more cash for the government. In simple terms, no more tipping at the cutters. It also helps that the government, masters of power generation, can raise power rates -- rates that are about the highest in Asia -- and have done so.

3. All told, VAT and EVAT improves the country's overall fiscal position, since, well, now the taxes are collected.

4. A better fiscal position means better credit.

5. Like $400 million dollars better.

I'm sure all that money will go to "countryside development". I know it's not that simple. But even the folks at congress can't figure it out themselves:

But the ability to make full use of the World Bank loans will be limited by the failure of Congress to pass this year's budget. Without a new spending plan, the government is obliged to spend no more than last year, or 16 per cent lower than the proposed 2006 budget.

Tags: Philippines, EVAT, Philippines+economy, World+Bank