BIR spurs confusion, sugar bidding halts

February 13, 2015
Daily Star by Carla Gomez | http://goo.gl/H3rsPT

Alarm was raised yesterday when there were no bidders for sugar at the largest sugar mill and refinery in Negros, while small farmers elsewhere were unable to sell their sugar amid confusion over the Bureau of Internal Revenue withholding tax on raw sugar, Sugar Regulatory Administrator Ma. Regina Martin said.


Trade and Industry Secretary GregoryDomingo, Agriculture Secretary Proceso Alcala and Agrarian Reform Secretary Virgilio de los Reyes have written to BIR Commissioner Kim Henares regarding the complaints of traders, farmers and agrarian reform beneficiaries, she said.

The Sugar Alliance of the Philippines is seeking an appointment with Finance Secretary Cesar Purisima, while Martin said she forwarded all the text messages she received from alarmed industry stakeholders to the BIR main office.

Martin said she was bombarded with texts messages from members of planters associations in the Victorias Milling Co., the largest sugar mill and refinery in Negros, complaining that there were no bidders for their sugar yesterday.

She also received a text message encouraging the traders not to buy sugar because of confusion over the BIR regulation on the payment of the 1 percent withholding tax upon the withdrawal of raw sugar from sugar mills, Martin said.

Martin said she received another text message from the Silay planters association that agrarian reform beneficiaries and small planters could not sell their sugar because the BIR is demanding official receipts from them.

“Even the poor farmers who could hardly afford to buy enough food for their families are required to obtain official receipts. It's an additional burden for them! Worst is, the market will be dried up with sugar - this will create another problem for SRA,” she said.