However, under the Republic Act 9337 of 2005, more commonly known as the expanded value added tax
law, Pagcor was removed from the list of exempt government entities, which was contested by the casino operator and regulator before the Supreme Court.
Ralph Recto who, after championing the painful but necessary Expanded Value Added Tax
Law in 2005 which staved off a fiscal crisis, promptly lost his reelection bid in 2007, with the public blaming him for the resulting higher prices.
He stressed the foundation has been religiously paying its employees' income tax and expanded value added tax
of 12 percent but is free from payment of the real-estate taxes under Proclamation Number 1670 granting MSBFI the right to occupy the disputed lot bounded by EDSA to the west, Agham Road to the east, Quezon Avenue to the south and a creek to the north.
However, unlike the Expanded Value Added Tax
(which we pushed for under former president Gloria Macapagal Arroyo) that was perceived by the public as purely pain, the Duterte administration's TRAIN is a combination of pain and gain.
Under President Gloria Macapagal-Arroyo's administration, Congress in 2007 passed the controversial expanded value added tax
(E-VAT) law, which last year gave the government about P373 billion in additional revenue.
Recto, who authored the Expanded Value Added Tax
law, said he wants to reduce taxes to generate more jobs with higher pay and to provide more credit for small enterprises to thrive.