Collection of taxes from sugar industry falls short of target

BACOLOD — Taxes collected by the Bureau of Internal Revenue (BIR) from the sugar industry here in the 10 months to October fell short of the target by 45%. BIR regional director Rodita Galanto said her office collected only P207 million, just a little more than half of the targeted P381.742 million for the period. The bureau collects value-added tax (VAT) in advance on refined sugar. Still, the sugar industry posted a 98% increase compared to the collection last year, she added. BIR Region 12 covers Negros Island and Siquijor. Negros accounts for 60% of the country’s sugar production. Ms. Galanto said that other industries in the region posted a 2.6% rise in collections in the same period. For this month, BIR 12 still needs to collect P450 million in taxes and P550 million next month. "Where are we going to get that?" Ms. Galanto asked. She added that they could not rely on withholding taxes to drive collections since personal tax exemption has been increased. Meanwhile, legal officer Nenette Epon said the BIR regional office has sought the dissolution of the order issued last November 7 by Regional Trial Court Judge Roberto Chiongson for the BIR Region 12 to cease and desist from implementing Revenue Regulation No. 13-2008 that imposed advance VAT on sugar cooperatives. "We have filed a necessary motion to dissolve the temporary restraining order," she said. Ms. Epon said that since a TRO lasts for only 20 days, the BIR Region 12 will resume collection of advance VAT on sugar after the injunction lapses. The injunction is in response to the civil action filed by the United Cadiz Sugar Farmers Association-Multi Purpose Cooperative headed by Eric Lacson. In its petition, the group argued that, as a cooperative, it is entitled to tax exemptions under the Cooperative Code of the Philippines, and that Revenue Regulation 13-2008 is void and illegal because there is no provision in the VAT law that allows advance imposition of tax. — N. L. Guadalquiver, BusinessWorld