Esguerra, MannyVida, John Michael Gabriel N.2025-02-032025-02-032009-12-09https://selib.upd.edu.ph/etdir/handle/123456789/4367This paper provides an analysis of the expanded Value-Added Tax system and how it has potentially affected the consumption expenditure of Filipino households across different income levels. Using the aggregated Family income and Expenditure Surveys for 2003 and 2006, the paper provides an analysis of how the VAT may have affected expenditure across two points in time, before and after the implementation of the expanded VAT. Also, the VAT is analyzed and compared to the total income of households in different income levels to determine the progressivity of the VAT. This paper finds that the VAT may be one of the many viable solutions in solving the fiscal problem of the Philippi11es. From the data, the VAT is seen to be a mildly progressive tax and that, contrary to popular belief, places the burden on higher-income households due to their higher consumption expenditure levels. Also, the VAT is seen to have possibly minimal effects on the welfare of lower-income households, since the VAT affects a very small percentage of the income of lower-income households.enValue added taxTaxHousehold taxHousehold expenditureExpanded VATVATThesis