Negros sugar growers oppose E-VAT on raw sugar

BACOLOD CITY , Philippines   â€“ The Negros Occidental Provincial Development Council (PDC) opposes the plan of the Bureau of Internal Revenue (BIR) to impose an Expanded Value Added Tax (E-VAT) on raw sugar and require the planters to issue an official receipt (OR) for the sugar they have sold.

The PDC’s position was stated in its resolution approved during its meeting last Sept. 30 in Talisay City, Negros Occidental.

The same resolution was unanimously approved by the Sangguniang Panlalawigan (SP) during its regular session last Wednesday, 5th District board member Alain Gatuslao said.

The BIR, in its revised Revenue Regulation Circular No. 13-2013, places the raw sugar under VAT coverage.

The PDC, headed by Gov. Alfredo Marañon Jr., said the BIR’s imposition of E-VAT on raw sugar and OR (official receipt) requirement would have serious implications on the industry that is 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 of the country as most planters might abandon planting sugarcane altogether, the PDC resolution warned.

Former governor Rafael Coscolluela, a member of the PDC and president of the Philippine Biodiversity and Conservation Foundation, had moved for the said position during the PDC meeting, which was unanimously seconded by all members present.

Coscolluela, also the president of the Confederation of Sugar Producers Associations, said it would be useful for government to seek other modes of taxation that would be a win-win situation for government and all producers, especially the small farmers, whose margins would be severely affected by the VAT on raw sugar.

Rep. Alfredo Benitez (Negros Occidental, 3rd District) said Monday that the sugar industry stakeholders should file a joint suit in court to prevent the BIR from imposing E-VAT on raw sugar and requiring the planters to issue OR on sugar sold.

He said it is useless to talk to BIR commissioner Kim Henares to convince her not to implement the circular.

“We are better off going to court to prove our point,” he said.

The Sugar Alliance of the Philippines is set to file a case against the BIR for imposing the said circular.