This was disclosed yesterday by Florecita Flores, executive director of the Philippine Chamber of Commerce and Industry, following a meeting with the BIR which said they now have to seriously go after tiangge operators because of the huge tax leakage.
While Flores refused to disclose how much the tax leakage is, Samie Lim, PCCI president, estimated that tiangges now capture about 30 percent of the electronics market that would otherwise go to legitimate, tax-paying retailers.
"Most of the products sold in tiangges are fake, smuggled, do not pay any taxes and some are not even sold by local people," Lim said.
He also warned about the environmental impact of dumped second-hand appliances in the country.
"The Philippines is in danger of becoming the dumping ground of products that are hazardous to the environment," Lim said.
Flores also admitted that the issue of smuggled goods is alarming local businessmen.
She said PCCI officials have met with Customs Commissioner Antonio Bernardo. Flores said Bernardo has agreed to put in a negative list of certain products that normally pass through customs bonded warehouses.
Second, Flores said, the PCCI is also working on convincing duty free shops to sell more locally made products.