BIR urged to suspend withholding tax on raw sugar

BACOLOD CITY, Philippines — “Suspend the one percent withholding tax on raw sugar,” Negros Occidental Governor Alfredo Marañon Jr. and the small planters asked the Bureau of Internal Revenue.

Marañon however added that suspending the tax implementation is not enough, the farmers should be exempted.

The more than 200 farmers, who attended the BIR dialogue Monday afternoon, insisted that the implementation of Revenue Regulation 11-2014 should be suspended because they have difficulties in complying with the requirements.

The small planters insisted their sugar were not released for more than four weeks and that they only made cash advances from their respective associations. They said that they waited more than a year for their sugarcane to be milled.

Lawyer Enrique Tabino of the Philippine Sugar Alliance said it would be best for the BIR to suspend the imposition of tax until in the next milling season “so that the small planters could prepare the required documents in getting their taxpayers identification number,” which is needed for the issuance of the authority to release sugar.

Tabino said that, for those who could not secure their birth certificates from the National Statistics Office, the BIR requires the small farmers to submit an affidavit of undertakings. “Make all the requirements clear to the small planters for their compliance,” he said.

The PSA official slammed the BIR for its strict requirement. “They first implemented the tax then hold a dialogue,” he said, adding that BIR had earlier suspended the implementation ofthe RR 11-2014 for 10 years from 2004.

Tabino reiterated that BIR should suspend the withholding tax on sugar because the milling season is already closing in June. About 95 percent of small planters are affected by the withholding tax implemented by the BIR, he said.

In response, lawyer Jose Ric Cabrera of BIR-District 12’s legal department insisted the agency could not give in to the appeal of the farmers, saying they should consult instead with BIR Commissioner Kim Henares on the matter. “We are only complying with and implementing the law and it should be Congress that will repeal it,” he said. — Marchel P. Espina (FREEMAN)