Informalization

Edkins and Zehfuss(2009) implies that informalization as a type of activity wherein authorities find difficulties in enforcing the law upon certain activities that involves some type of business that deliberately or inadvertently evade following government regulation. Edkins and Zehfuss(2009) also implies that informalization comprises a huge part of a country's gross domestic product(GDP); sometimes even comprising about 50% of other countries' gross domestic product.

In my opinion , informalization causes a huge problem in our government's budget. Our President said in his state of the nation address (SONA) that the Philippines' tax collection lacked 23.8 billion pesos and the government expenditures exceeded to an amount of 45.1 billion pesos( President Benigno S. Aquino SONA 2010 transcript, July 25,2010). The government could have collected more taxes for the national budget if authorities have jurisdiction over the online business sector. Many people have use the internet to do business and are not obligated to pay taxes. Aside from the informal online businesses that are established, many entrepreneurs that do business in sidewalks or sidewalk vendors do not pay taxes. The government tries to create establishments for these vendors,but these vendors do not occupy these establishments in order to evade paying rent and getting business permits. These vendors know that occupying those establishments and getting business permits would significantly lower their income. The government also tries to stop sidewalk vendors through the MMDA, but these vendors just keep coming back. The govenrment must think of ways that would convince sidewalk vendors to operate legally,and find ways to have these online businesses to pay taxes. The national budget would greatly increase once the government finds solutions to the problem of informalization.


references:

• Edkins, J. and Zehfuss, M.(eds.).(2009). Global Politics: A New introduction.London:Routledge

• President Benigno S. Aquino SONA 2010 transcript.(July 25,2010).Accessed October 28,2010 from http://www.philippinegovernment.info/2010/07/president-benigno-noynoy-s-aquino-pnoy.html