Salceda: PH losing almost P5 billion a year due to undervaluation of agri imports at Subic port

The port of Subic may be losing almost P5 billion a year in lost revenues due to the undervaluation of incoming agricultural products, Albay Representative Joey Salceda said on Tuesday.

“Based on our calculations of average per kg prices of commodities imported through Subic, we could be losing as much as P4.992 billion in tax revenues from undervaluation of agricultural products alone,” Salceda said in a statement.

Salceda is the chairman of the House Committee on Ways and Means.

"And I think the number is much higher since our calculation is based on official figures only. We are not yet counting figures that were not reported for some reason,” Salceda said.

Salceda said the undervaluation appeared to be “most evident” in beef products, in which the average per kilo prices among Subic import arrivals is just 32% of global trading prices.

“It's obvious from paper data alone that something's very wrong,” Salceda said.

The lawmaker said that he received “credible reports” which suggested that commodities had been “undervalued” at as low as 1/8 of the actual commodity price.

“A container van with duties that should be P800,000 pays just P100,000,” Salceda said.

Salceda said the estimated losses did not include those lost to “actual smuggling.”

“There's also the issue of misclassification or products that are not reported according to their real category. We can't get a sense of the revenue loss due to that practice yet," Salceda said.

After an investigation of the food smuggling, Salceda said the House tax panel would proceed with investigations into petroleum and other smuggled commodities.

“There will be policy changes. And if things don't change, I will not be surprised to see personnel changes, too,” Salceda said.—NB, GMA Integrated News