Jojo Buñag goes all the way for good fortune

According to Xiaoyang Xia, Manila Bureau Chief of Shanghai’s Wen Hui Daily, 168 means going all the way for good fortune. Apparently, one six in Mandarin means all the way and eight, as we all know, means good fortune. That probably explains why the 168 mall in Divisoria is doing so well these days. Of course the dirt cheap, tax free prices help too.

I had a long talk with BIR chief Jojo Buñag yesterday at the Tuesday Club and he said, he will go all the way for good fortune too… He will make sure the habitual tax dodgers at 168 change their bad habits. He admitted that the area is a tough challenge for the tax bureau. But he promised, he would get them yet.

A week ago, Jojo personally led a team of BIR agents on a mission to tax map 168 and other malls in the Divisoria and Chinatown areas. I imagine Jojo was not surprised to find out that nine out of 10 retailers there are tax dodgers. The BIR officials assigned to the area have a lot of explaining to do. Jojo told me he intends to focus national attention in getting the merchants there to come clean.

While I believe in the competence, honesty and sincerity of Jojo, I am not sure the mission objective he set for himself is achievable soon. I know Jojo would do his best to get those merchants in 168 and other Divisoria malls to pay their proper taxes but something tells me he might end up like King Canute on a beach, trying to give orders to the angry waves to stop.

But Jojo’s job must be done. Not only must those merchants carry their rightful share of the burden of financing this government, it is grossly unfair for them to evade taxes and attract consumers away from legitimate businessmen who pay their taxes. In fact, the one way the BIR can earn credibility from regular taxpayers is for the agency to prove that they can collect from Divisoria-type merchants.

A large part of our underground economy must be in such Divisoria-type operations. Other than 168, the rice traders who deal mostly in cash, must be dodging most of their taxes. NEDA should be able to report a better GDP growth rate if BIR manages to flush out those tax evaders from the underground economy. Maybe Ate Glue won’t even have to exercise her power to raise VAT to 12 percent if only those Divisoria tax dodgers pay up their rightful share of taxes.

Personally, I am peeved that I have to issue a receipt and pay VAT for the fee I earn to write this column. The law does not allow me to just include it as part of my regular compensation income. Yet, all those merchants and professionals who should be issuing receipts, don’t.

This is why I can understand why one of my readers reacted strongly to a column I wrote last week that ascribed the low prices at 168 to the effect of globalization. The reader, a Chinoy from Binondo, wrote that they are not afraid of competition, so long as there is an even playing field. I am not sure of the veracity of the accusations made in the e-mail but they seem believable. In fairness to the reader and the legitimate entrepreneurs in Binondo, here are portions of that e-mail expressing their "hinaings."

I am an avid reader of your column in The Star. Keep up the good work. But did you know that:

- the price of a nine sq m mall space at 168 is around 210,000 to 230,000 pesos/sq meter and that almost 90 percent of the tenants/owners are mainland Chinese? They pay for each stall a tong of P1,000 to P1,500 per month to the BIR satellite office situated right inside the mall. According to those Chinese, that’s the tax they paid every month. This is no chicken feed as there are a lot of stalls there and that could easily net a few hundred thousands per month. This is also being done in Divisoria mall.

Almost all the business names of the stalls are fictitious (sometimes they use the name of their salesladies). These same Chinese mainlanders have stores in Divisoria mall, Baclaran etc. They change their business name every year so that they are always non-VAT. Daily sales are about 300,000 pesos/day for a small stall. Within one year, they can buy condos and cars.

It is cheaper to import via the consolidation of stocks in containers rather than through the legal channel. During Erap’s time, these importers pay P1,100 per container so that they can pass through the green lane without any inspection. But during GMA’s time, these importers pay their tong by the week. You see a deluge of imported Made in China items because the price per cbm or container has really gone down. All of these importers are slashing down their prices to make sulit the tong they pay every week to Customs.

During Erap’s time, the price per head paid by these illegal aliens to secure a Philippine passport or visa (kuno) is P200,000. Now, it’s 200,000 per family. These Mainland Chinese are all over, not only in Metro Manila but even as far as Aparri to Jolo. They are now stealing the customers of the wholesalers in their respective provinces, who have folded up because of them In fact, they are now dominating the underground economy here in Manila and all over the country.

Actually, I have complained to the BIR (during Parayno’s term), and do you know what one of the close aides of Parayno told me: you can’t do anything about it because this has the blessing from above. Check with the rank and file of the Customs and immigration to confirm what I am saying.

To be frank with you, I am a Chinoy businessman in Divisoria. And business is really bad because of these Chinese mainlanders. Of course, you might say I am sourgraping, but truly, I am not afraid of competition if there is a level playing field. We pay our taxes (we are in the top 1000 corporations, we were even awarded Centennial taxpayer by GMA), my workers are paid their dues (salary in these malls is 100 pesos/day). Right now, even ShoeMart is complaining about 168 mall. In fact, everybody is complaining about the drop in sales except these Chinese mainlanders in Divisoria mall and 168 mall. More than break even na daw their 2M pesos investment.

Because of their sheer numbers (where before we are only around 100+ stores here in Divisoria, now there are thousands), everyone’s share of the pie would now is a lick instead of a slice. How come the authorities have not done anything about them? Do they not think of what they are doing to their fellow Filipinos?

Yesterday, immigration authorities conducted a raid in Baclaran of these illegal aliens. Do you know what happened? More than 60 percent of the stalls in Divisoria mall and 168 mall did not open today because of fear of being caught. News around Chinatown is that these aliens paid the immigration P300 k to be released (of course, that’s under the table). Today was the turn of the BIR to make pakita tao. They were checking if these stores are issuing receipts. hahahaha....

Truly, I do not even know whether to cry or laugh at ourselves. We really made our own bed. Maybe it’s time to move on to another country. No wonder my best friend told me that if not for his parents and siblings, he will never come back to the Philippines.

Holiday joy

Dr. Ernie E. has this story about how to enjoy the holidays, which also sounded like the story sent by another reader, Palermo Soriano.

A woman goes into a tattoo parlor and tells the tattoo artist that she wants a tattoo of a turkey on her right thigh just below her bikini line. She also wants him to put "Happy Thanksgiving" under the turkey.

So the guy does it and it comes out looking really good.

The woman then instructs him to put a Santa tattoo with "Merry Christmas" up on her left thigh. So the guy does it and it comes out looking good, too.

As the woman is getting dressed to leave, the tattoo artist asks, "If you don’t mind, could you tell me why you had me put such unusual tattoos on your thighs?"

She says "I’m sick and tired of my husband complaining all the time that there’s nothing good to eat between Thanksgiving and Christmas!"

Boo Chanco’s e-mail address is [email protected]