As to the question of whether CD-R will go up, the answer is yes, it should. The same as with any other consumer good.
VAT is a tax on consumption. The burden of the tax is ultimately borne by us, the consumers. The method of collection, however, is through the input-output system. Kaya ang mga retailers na ang nag-papatong ng VAT para problema na nila mag-remit ng tax na tayo ang sumasalo.
VAT is not a business tax. It only appears that way. Say for example, our CD-R retailer has only one transaction for the quarter with the following facts:
Purchase price: P5.50, VAT inclusive
Selling price: P11.00, VAT inclusive
At the end of the quarter he remits P0.50 to the BIR (P1.00 output less P0.50 input), then pockets the P5.00 profit.
E kung walang VAT:
Purchase price: P5.00
Selling price: P10.00
In this case, he likewise pockets P5.00!
The VAT law, prior to amendment, was already good enough. The real problem was, or should I say is, leakages. And of course, you can trace leakage to compliance by... janjararan... us, the consumers who happen to work for these companies in the middle of the supply chain who do not comply with the VAT law. Kaya naisip nila itaas ang VAT rate na lang dahil mas madali i-monitor ang retail kesa all other industries in between as your purchased item is transformed from raw material to consumer good.
Sir barrister, just glad to share what I know. I believe you must be a lawyer. Ako ay hamak na akawntant lang po. I can send you a PDF version of RR 16-2005 through email if you want.