Thursday, March 13, 2008
Negros business tax lowest in '07
By Karl G. Ombion
PERSISTENT reports that some members of the business community in Negros are delinquent in paying their taxes seem to be true in view of the Bureau of Internal Revenue's tax payment report for 2007.
In its report the pure business sector had a total tax payment of only P80,311,192.10, or 2.35 percent of the region's total tax collection in 2007.
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The pure business sector, BIR Regional Director Rodita B. Galanto explained are persons and groups engaged in various business and entrepreneurial activities mainly to earn profit.
"This sector which must have at least P1.5 million gross sales a year, are numerous, and whose combined profit could run up to several hundreds of millions, but obviously a number of them are not paying or not paying well and on time their tax dues to the government," Galanto said.
She also said the BIR is still making an investigation on a number of self-help businesses, including e-load retailers, internet cafe, who reportedly do not pay taxes.
In this region, Galanto added, we still have P100 million account receivables, and worth P50 million delinquent accounts, mostly attributed to the pure business sector.
When asked by reporters who these delinquent tax payers or evaders are, Galanto refused to divulge information citing a confidentiality clause in the Philippine Tax Code which only the Secretary of Finance can issue upon justifiable request.
The 2007 report further said tax collections from withholding taxes on wages topped the list at 28.21 percent of total tax collections, or P964,915,031.84.
This is followed by Creditable Withholding taxes at 10.19 percent or P348,400,541.96, Wholesale and Retail Trade taxes at 7.71 percent or P263,698,942.33, Tax amnesty on income at 7.55 percent or P15,759,683.87.
VAT on sugar at 7.28 percent or P248,900,573.26, Domestic corporation at 6.11 percent or P208,805,664.15, Final Tax 5 percent provided under e-VAT law at 4.77 percent or P163,204,422.76, Documentary stamps at 3.40 percent or P116,317,807.60, e-VAT on electricity at 1.29 percent or P44,105,419.57, Mixed taxes at .31 percent or P10,697,884.11, Pure compensation at .27 percent or P9,185,747.46.
Meanwhile, Galanto confirmed earlier reports that BIR will soon begin the construction of its P150 million 2-storey new building in a vacant lot owned by the Provincial Government in front of the Land Bank of the Philippines in Gatuslao street.
She hopes that the construction will be over before the end of this year.
For more Philippine news, visit Sun.Star Dumaguete.
(March 13, 2008 issue)
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