BACOLOD CITY, Philippines — The plan of the BIR to impose expanded value added tax (EVAT) on raw sugar and to require planters to issue official receipts for the sugar they sold has met objection from Negros Occidental officials and the planters themselves.
The Provincial Development Council (PDC), during its meeting in Talisay City of Negros Occidental, has approved a resolution opposing the BIR move. This resolution was eventually approved by the Provincial Board last Wednesday, according to PB Member Alain Gatuslao (5th district).
The BIR, in its revised Revenue Regulation Circular No. 13-2013, places the raw sugar under EVAT coverage.
The PDC, headed by Gov. Alfredo Marañon Jr., said the BIR's imposition of EVAT on raw sugar and OR requirement will have serious implications on the industry, which is even facing the negative effects of the removal of tariff for imported sugar in 2015.
The sugar industry is even trying to bring down the cost of production to improve its competitiveness by 2015 when the Asean Free Trade Agreement lifts the tariff on imported sugar, it added.
The implementation of the BIR circular would greatly affect not only the economy of Negros Occidental but also of other sugar-producing provinces in the country, as most planters might decide to abandon planting sugarcane altogether, the PDC resolution added.
Former Governor Rafael Coscolluela, a member of the PDC and president of the Confederation of Sugar Producers Associations, said it would be useful for government to seek other modes of taxation that will be a win-win situation for government and all producers, especially the small farmers, whose margins will be severely affected by the EVAT on raw sugar.
Representative Alfredo Benitez (3rd district, Negros Occidental) said the sugar industry stakeholders should file a joint suit in court to prevent the BIR from imposing EVAT on raw sugar and requiring the planters to issue OR on sugar sold.
He said it will be useless to talk to BIR Commissioner Kim Henares and convince her not to implement the circular. "We are better off going to court to prove our point," he added.
The Sugar Alliance of the Philippines, saying it was trying to save the country's sugar industry, was set to file a case against the BIR for imposing the circular. (FREEMAN)