‘The operative word is ‘save.’ We should now learn how to properly budget our finances as the price of everything we purchase will surely change. We should decide on what we really need to buy and what can wait.
DUBAI: With the UAE government having implemented Value Added Tax at the start of the New Year, three things top the list of resolutions that overseas Filipino workers (OFWs) have: save money, think of a start-up business in the Philippines and go home for good, a random TFT survey has revealed.
Close to 2,000 OFWs were polled across the UAE of which 80 percent said they will seriously start saving and do away with “unnecessary expenses,” while a little over half the total respondents – or 53% – said they will be considering a start-up business. Some 20% said they might opt to go home for good or move elsewhere.
The respondents were asked about their New Year’s resolutions, of which some 16 items were listed for them to select their choices from. Multiple answers were allowed, thus the percentages don’t add up.
VAT
VAT is a “consumption” tax levied for the use of goods and services. It is charged at each step of the supply chain and consumers bear the cost while registered businesses collect and account for the tax on behalf of the government.
It was introduced on Jan. 1, 2018 and in compliance with Federal Decree-Law No 8 of 2017 issued by President HH Sheikh Khalifa bin Zayed Al Nahyan.
The measure is seen to affect spending habits as it limits the extent to which disposable incomes can be used.
Save money
“Less splurges and being more practical in spending is now a must,” said Dr. Rebecca “Becky” Oandasan-Desiderio, CEO of The Medical City-Dubai.
“For sure,” said Abygail Ognikob who works at Media City, “shopping ng mga less important stuff ang unang matatanggal at saka yung pakain-kain sa labas.” (For sure, going shopping for less important stuff will be lessened as well as dining out.)
“I have managed to pay off my credit card debts. It is now a matter of managing my finances especially that my family is with me in Dubai and VAT is here,” said Rosette Ruan Cabilla, project officer at an international healthcare company.
Ion Gonzaga, blogger and entrepreneur, said he will “seriously manage his financials even better” in light of the new measure, among other considerations.
Erwin Abrantes Lladoc of the League of Filipino Gents – Dubai, counts the following among his New Year’s resolutions: try to stay away from sale events, start saving, plan for a start-up business and seriously manage his financials.
“Those are the things I need to do. It’s just being practical. We should be smart enough to handle our expenses,” he said.
Cut down on expenses
Paula Vianca Lim, who works at a media outfit, agreed: “We need to cut down unnecessary expenses because prices of even the basic commodities will be going up.”
The same rang through to Jenina Espina, a bank employee: “Kailangan na talagang i-check ang kaperahan ng maigi.” (We really need to check our finances thoroughly.)
Marie Bernadette Jacobo Ortiguerra, a communications officer at a Dubai five-star hotel has two resolutions: start saving and seriously manage financials. “I need to balance all expenses with VAT in place,” she said.
Mhy De Guzman, an entrepreneur who sends her kids to school here in the UAE, said they will also start saving. “Lahat ng makikita sa mall may VAT na. Mula sa pagpunta dun sakay ng taksi hanggang sa pagkain duon. Wow!” she exclaimed. (All the things you’d see in the malls will have VAT. Going there on a taxi and dining there will also have VAT. Wow!)
De Guzman said everybody should start managing their finances in light of the new tax measure “until we get used to it and receive salary adjustment.”
Start saving it is as well for Ken Peralta, brand manager at a Filipino-themed restaurant. “Kasi may taxes na at tataas na ang mga bilihin. Kailangan nang magtipid,” he said. (Because there will be taxes on commodities. We need to be thrifty.)
“The operative word is ‘save,’” said social media strategist Anton Deleon. “We should now learn how to properly budget our finances as the price of everything we purchase will surely change. These small increases in cost will still matter if you total it, so proper budgeting means allowing us to decide on what we really need to buy and what can wait,” he added.
Start-up business
“Gusto kong magstart-up business sa Pilipinas. Am still studying kung ano’ng patok na business duon kasi may VAT na ditto,” said Engr. Fanessa Lanotes of Dubai.
For the same reason, Anna Lagman said she was seriously considering opening as small business back home, “para may fall back in case things don’t turn out good for me here.”
Engr. Yuri Cipriano, who also runs a small building cleaning services in the UAE, said among his New Year’s resolution is to open a small business back home as well, while managing his finances here. “
“May mga mina-manage na bank loan pa kasi ako sa kasalukuyan, ayaw ko na madagdagan pa; kailangan ay lumaki ang savings hindi ang utang at expenses Kailangan natin ang ganyan bago maging huli ang lahat,” he said. (I am still managing bank loans, I don’t want to have it piled up; I need to have grow my savings not my loans. We need to do this before it’s too late.)
Peralta said he is planning on opening a small business somewhere, too.
Home for good
Going home for good ranked third among the top answers by the respondents with most saying they plan to do so when they have saved enough and ready to run a start-up enterprise back home.
“I think VAT or no VAT, that’s the way it should be,” said Nerissa Benitez, registered nurse. “We can’t be working abroad all our lives.”
