Traders: August extension on new receipts not enough

CEBU, Philippines - Although the local business community welcomed the extension of the deadline for using new receipts until the end of August, industry leaders lamented on the capacity of the accredited printers to meet the volume of the demand. from businesses and shared that the two-month period is still not enough for them to comply with the regulation.

BIR Commissioner Kim Henares recently issued Memorandum Circular 44-2013 that extends the validity of old BIR receipts from June 30 to August 30 this year.

Cebu Chamber of Commerce and Industry (CCCI) president Lito Maderazo said that although the business community is happy and thankful for the two-month extension, it may still be difficult to comply due to limited time.

He said that the private sector supports the thrust of the government towards tax reforms and greater revenue generation but should be given ample time to prepare since the new regulation requires a tedious process.

In concerted efforts with the Philippine Chamber of Commerce and Industry (PCCI), CCCI earlier requested that the June 2013 deadline be moved to December of this year to allow companies to use up their previously printed receipts.

“It was actually not properly disseminated. Businessmen were caught off guard. There are plenty of receipts to be thrown away or be shredded and it is going to be a waste of money. Notwithstanding, we have to consider the difficulty of printing of receipts and getting the permit from BIR,” Maderazo said.

Mandaue Chamber of Commerce and Industry (MCCI) president Philip Tan said that the private sector recognized and lauded the intention of the bureau to implement such regulation in order to eradicate unscrupulous businessmen and curtail smuggling and tax evasion.

“Legitimate businessmen are happy about that since it could level the playing field in terms of paying taxes and eventually raise the competitiveness of the industry. This is favorable in terms of doing business in the country but this is a question on statistics. We’re not just talking about implementation,” he told The FREEMAN.

He added that the two-month extension may not be sufficient to address the present volume of receipts needed by all forms of businesses in the country given the limited capacity of the accredited printing press.

“Have they evaluated the capacity of the printers and anticipated the number of businesses who will have to print new receipts within the next two months. Kaya ba nila? What if the demand will exceed the capacity? If they don’t have the capability to print as per required, two months are not enough,” he continued.

Tan then considered the extension as a “band-aid” solution to the clamor of the business community against the regulation of BIR.

“It is not that just simple. Adapting to change is not that easy. Dili sayon ang change. Yes, we are happy but it is not the exact solution. Everybody will be treated like a new business given all the procedures. Aside from all the expenses, it takes time,” he said.

Rey Calooy of the Filipino Cebuano Business Club Inc. (FCBI) said that the extension would significantly benefit the micro, small and medium enterprise sector that could be greatly affected with financial burden.

“It’s good that BIR heard us in our demand for an extension but I think it would be better if it would be moved until December 31,” he said.

Robert Go of the Philippine Retailers Association – Cebu Chapter considered the extension as a relief to small and medium enterprises who are mostly not prepared for the regulation due to additional cost of operating expenses and are maximizing their receipts that are previously printed.

While only large-scale printing press and those who applied for accreditation are certified to print official invoices by the BIR, he said that most SMEs, particularly those from the countryside, usually have their printing needs catered by the smaller ones or even have no receipts issued at all.

“SMEs are the ones mostly affected. Most large-scale businesses immediately responded when the provision came out and have already complied. Actually, this should also teach businesses to comply on time. It is a matter of compliance for entrepreneurs and no headache for BIR,”  Go said, who is also the owner of Prince Warehouse Club.

Henares, however, said the BIR would no longer extend the deadline after August 30 as they have given the sector “more than enough” time to comply with the new regulation.

Cebu Business Club president Dondi Joseph for his part shared that, although he welcomes the new regulation, such matter should have been consulted with the business community and have been carefully thought out before implementing.

The local business leaders, on the other hand, assured BIR that the Cebu business community is willing to comply with the regulation. /JOB (FREEMAN)