Chiz to sugar coops: Fight advanced VAT
By Carla Gomez
Philippine Daily Inquirer
First Posted 01:01:00 10/11/2008
BACOLOD CITY – Sen. Francis Escudero on Tuesday advised sugar cooperative leaders to seek a temporary restraining order to stop the implementation of the advance collection of the value-added tax imposed on the sale of refined sugar.
Escudero presided over the Senate committee on ways and means’ hearing on Tuesday in response to calls for an inquiry on the advance collection of VAT on refined sugar.
The BIR informed the Senate committee that it had published Revenue Regulation No. 13-2008 that consolidated regulations on advanced VAT on the sale of refined sugar, Sugar Regulatory Administration head Rafael Coscolluela said.
The regulation, signed by Finance Secretary Margarito Teves and resigned BIR chief Lilian Hefti, was to take effect 15 days after its publication.
According to the new BIR regulation, a cooperative, which is classified as a sugarcane producer, would be subjected to the advance payment of VAT unless the buyer was a member of the cooperative.
Escudero told the Inquirer that the Tuesday hearing was the first but the Senate holds hearings only in aid of legislation and would not have the power to stop BIR from implementing its new revenue regulation.
He said the sugar cooperatives should instead seek redress in courts.
Coscolluela said the BIR made it difficult for cooperatives to meet the requirements for advanced VAT exemption.
The new BIR rules, he said, “tighten the screws.”
Escudero said the BIR is saying that a cooperative can be exempt from advanced taxes if the refined sugar in question was actually from sugarcane produced by its members, while the cooperatives are saying this is not necessarily so.
Sen. Juan Miguel Zubiri said he and Escudero are supporting the bill that he authored that he said would prevent the BIR from taxing sugar cooperatives.
Zubiri said the proposed Philippine Cooperatives Code of 2008 passed the Senate on third reading and was expected to sail through the House of Representatives.
He said the Senate hopes the bill would be enacted by December as the chamber’s gift to the people of Negros.
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