Friday, September 12, 2008 Sugar coops hit BIR for collecting VAT
THE Negros Occidental Provincial Board (PB) has decided to conduct an en banc committee hearing to investigate the complaints of sugar cooperatives against the recent action of a Bureau of Internal Revenue (BIR) official to collect taxes from them.
This was agreed in Thursday's regular session of the PB after Board Member Melvin Ibañez, in a privilege speech, took up the "plight of the agricultural cooperatives of the sugar industry."
He noted that the coops "are our major partners for growth and development of our province. They are protected by the provisions embodied in the Cooperative Code of the Philippines...even our legislators have recognized their role by giving them exemptions from taxes."
"It has been brought to our attention, however, that the recent actions made by the OIC regional director of the BIR, Ms. Rodita B. Galanto, is causing them hardships which threaten their very existence," Ibañez said.
Among the issues raised by the sugar cooperatives are the "imposition of the value added tax, paid in advance from the 60 percent of the cooperative's total production, even if the cooperative is entitled to a 100 percent tax exemption; requiring cooperatives to submit list of buyers of their products and their respective TIN cards as a requisite for their exemption and; harassing the cooperatives with the examination of their cooperative books even if she does not have the prior written approval from the BIR commissioner for taxable year 2005 pursuant to Revenue Regulation 12-2007 as well as prior written approval from the Cooperative Development Authority (CDA) pursuant to Article 62 of Republic Act 6938 in relation to BIR Revenue Regulation 20-2001."
"If these issues remain unresolved, I understand the BIR will not anymore issue Authorization Allowing the Release of Refined Sugar (AARRS) which is needed in the marketing of sugar," Ibañez added.
Ibañez's move came after 13 sugar cooperatives in the province signed a position paper "on the issue of the BIR imposing whimsical conditions in its effort to collect taxes from the sugar cooperatives."
A copy of the petition dated September 9 was addressed to Governor Isidro Zayco and furnished by the PB, signed by the 13 coops, including Sagesplas Association, APP-Negros Farmers Multi-Purpose Cooperative, Negros del Norte Planters Association Multi-Purpose Cooperative, Negros Agricultural Entrepreneurs Multi-Purpose Cooperative, Sagesplas Multi-Purpose Cooperative, Usetpai Multi-Purpose Cooperative, Dos Hermanas Multi-Purpose Cooperative, Ma-ao Parish Multi-Purpose Cooperative, Negros Farmers Multi-Purpose Cooperatives, Sugarcane Growers Multi-Purpose Cooperatives, United South VMC Multi-Purpose Cooperatives and Victorias Milling Company (VMC) Farmers' Cooperative Inc.
"Our province has the largest share of the number of agricultural cooperatives totaling to more than 25 organizations. We have seen their cooperation as we improve sugar production," the petition said.
"Today, however, these progress are threatened. Our industry gains would eventually led to nowhere if we allow the harassments on our agricultural cooperatives to continue. Our cooperatives are put in awkward positions by the actions of OIC BIR regional director Galanto through her whimsical imposition of taxes which are without basis," the petition added.
"If allowed to continue, our agricultural cooperatives in the sugar industry will be unjustly taxed. We do not want to create confusion on our recovering sugar industry. What we need are clear-cut guidelines for our farmers to use as basis in planning their production and marketing," the protesting coops added. "If we do not put an end to this seemingly abuse of discretion of Galanto, the sugar industry may again experience dark days." (CGC)
