Sugarmen welcome House probe on tax

March 24, 2015
Visayan Daily star by Carla Gomez |http://goo.gl/W9u9vp

Sugar leaders yesterday welcomed the call of Rep. Alfredo Abelardo Benitez (Neg. Occ., 3rd District) for a House inquiry into tax impositions on raw sugar by the Bureau of Internal Revenue, but aired their opposition to the move to subject more agricultural lands to agrarian reform.


 

Benitez said he is seeking a House inquiry on the issuance by the BIR of Revenue Regulation No. 4-2015 that imposes12 percent advance VAT Tax on raw and refined sugar, and Revenue Regulation 11-2014 that imposes a one percent creditable withholding tax on raw sugar and molasses upon withdrawal from the mills.

Manuel Lamata, president of the United Sugar Producers Federation of the Philippines, referring to BIR Commissioner Kim Henares, said, “We welcome the move of the Rep. Benitez to question the BIR super lady on the definition of raw sugar. She is the only one that has changed the definition of raw from the world accepted term.”

Enrique Rojas, president of the National Federation of Sugarcane Planters, said they congratulate Benitez for taking up the cudgels for the sugar industry.

“It is high time that Congress should make BIR Commissioner Kim Henares understand that she should not interpret the law according to her own whims but should respect the spirit and intent of the law as passed by Congress,” he said.

The moves of Henares in imposing more taxes on the sugar industry comes at a most inopportune time when the industry is facing stiff competition from cheaper, subsidized imported sugar due to the full implementation of ASEAN Free Trade Area agreement, Rojas said.

“Instead of adding a burden on the industry, government should help us to be more competitive. In the end the moves of the BIR will adversely affect the marginalized farmers and the millions of Filipinos who depend on the sugar industry,” he said.

Francis de la Rama, chairman of the Confederation of Sugar Producers Associations Negros-Panay chapter, also said “Instead of government helping us compete in the world market they are adding a burden to our small planters”

Sugar Regulatory Administrator Ma. Regina Martin said the plight of the small farmers must be eased.

The sugar leaders also aired their reaction to Benitez’s statement that members of the Visayan bloc are agreeable to the issuance of notices of coverage for the distribution of the remaining 50,000 has. identified by the Department of Agrarian Reform for the completion of the Comprehensive Agrarian Reform Program, but are against the extension of CARP for another two years.

De la Rama said government should focus on support services in areas covered, rather than getting away productive areas.

Lamata said ”I hope it truly ends there for the sake of the beneficiaries. Money should be spent on buying tractors, equipment and fertilizer.”

Rojas said “We in the Sugar Alliance have not discussed this matter yet, but, personally, I am against additional compulsory acquisition of agricultural lands.”

Government should focus more on providing support services to existing agrarian reform beneficiaries so that the land awarded to them will become productive and their economic situation will improve, he said.

“Almost three decades of CARP have done tremendous damage to our country. From a net agricultural exporter, we became an importer of agri products. We need to stop further fragmentation of productive lands so that we can give our agriculture sector a chance to improve,” Rojas said.