CEBU, Philippines – The proposal to impose tax on second hand clothing, famously known as "ukay-ukay" has gained the support of Cebu fifth district Rep. Ramon "Red" Durano IV, who said the plan should push through as these kinds of goods are now being sold commercially.
Durano said for all he knew these second hand clothing have been imported here in the country as donation to charity institutions but it cannot also be denied that they are being sold as commodity and are now proliferating in the different of the country especially during fiestas.
He added that since importers of ukay-ukay are rich businessmen, they should be taxed lightly by the government.
But Rep. Jannette Garin of the first district of Iloilo branded the proposal of BOC as anti-poor, saying majority of those who buy used clothing are the poor people who do not have enough money to buy brand new clothes.
Once tax is imposed on ukay-ukay, Garin said its importers will just pass on to buyers the amount they have pain in bringing these good to the country and in reality, the government will then be imposing tax on the poor people.
Instead of pushing through with the plan, she said the BOC should instead improve its collection on taxable goods and prevent smuggled goods from entering the coun-try.
For his part, Rep. Bernardo Vergara of the lone district of Baguio said once implemented, the move will affect the ukay-ukay business in Baguio which is one of their tourist attractions.
He said when tourists come to his city, they go right away to "ukay-ukay stores."
The BOC said taxing used clothing shipment is a good idea as this will provide additional revenue for the bureau.
But Customs Collector Ronnie Silvestre said that before this could happen, the law that prohibits importation of used clothing has to be repealed first.
Ahmed Erpe, BOC deputy collector for operations, said this is an issue that needs to be resolved by the legislature through an amendment of law.
Earlier, BOC Commissioner Angelito Alvarez said the bureau stands to earn P700 million a year once the importation of used apparel or ukay-ukay is legalized and is made taxable.
To "safeguard the health of the people and maintain the dignity of the nation," commercial importation of textile articles commonly known as used clothing and rags are prohibited Under Republic Act 4653.
The law provides penalty of fine of not less than P200 nor more than P20,000 and imprisonment of not less than two years nor more than five years.
Under the Tariff and Customs Code of the Philippines, importation of prohibited goods is subject to confiscation or seizure.
Florante Ricarte, BOC assistant assessment chief, said they have apprehended several container vans containing used clothing and these were mostly donated to the Department of Social Welfare and Development. These used clothing were usually donated to fire victims.
Alvarez had said he will discuss his proposal with eight congressmen who were in a way connected with the BOC. - Flor Z. Perolina and Mitchelle L. Palaubsanon/WAB (FREEMAN)