March 17, 2015
Daily Star by Carla Gomez | http://goo.gl/wyEZ7V
The Bureau of Internal Revenue has issued Revenue Regulation No 4-2015 on imposing advance Value Added Tax on raw and refined sugar but sugar leaders yesterday said it cannot be imposed because it is still covered by a court issued restraining order.
Enrique Rojas, president of the National Federation of Sugarcane Planters, said the new order was published yesterday and it will take effect on April 1.
“We will study its impact on the planters. The BIR should consider that we are now in the full implementation of regional trade liberalization and that our producers are facing stiff competition from cheaper, subsidized imported sugar.
“Instead of imposing more taxes which will make domestically produced sugar at a disadvantage against imported sugar, government should help our producers become cost efficient in our operations,” Rojas said.
He also said they are positive the problem can be resolved, but meanwhile, the temporary retraining order issued by the Cadiz Regional Trial Court against EVAT on raw sugar still holds.
Manuel Lamata, United Sugar Producers' Federation of the Philippines president, also said the new revenue regulation is still covered by the TRO issued by a Cadiz judge which has not been resolved as he has retired.
“I think the best thing the BIR should do is wait for the court to decide on the case. And, secondly, for BIR to already form a committee to sit down with the committee from the Sugar Alliance of the Philippines to discuss a win-win solution that is a final tax scheme,” he added.
Francis de la Rama, chairman of the Confederation of Sugar Producers Associations Negros-Panay chapter, said the new BIR revenue regulation that imposes a 12 percent VAT will greatly affect the small planters.
“We will try to contest that,” he said