GMA wants tax privileges at Subic port scaled back
PRESIDENT Gloria Macapagal Arroyo has ordered the tax privilege enjoyed by companies within the Subic free port rationalized or made less wasteful to plug the government’s potential revenue losses from the raw materials, capital goods and equipment being brought into it.
She signed Executive Order 660 tasking Internal Revenue and Customs to review the duties on excess importation amid reports the government loses at least P65 billion in foregone taxes annually on motor vehicles alone.
“There is a need to ensure that the raw materials, capital goods and equipment imported byregistered enterprises [in Subic] are only those required for their business activities and operations,” Mrs. Arroyo said.
“Importations in excess of those requirements... shall be deemed brought into or sold within the Customs territory and therefore subject to taxes,” she said.
She ordered Customs, Internal Revenue and the Subic Bay Metropolitan Authority to issue the corresponding circulars explaining her order, saying the government needed to plug tax loopholes to collect more revenue to finance economic development.
SBMA chairman Feliciano Salonga and administrator Armando Arreza said they had yet to see a copy of the new executive order.
Salonga said excess importation could be considered another form of smuggling, adding the free port had always been plagued by it.
Antonio Villar, head of the Presidential Anti-Smuggling Group, said the International Monetary Fund had estimated that the Philippines’ revenue losses on motor vehicles alone came to at least P13 billion a month. Joyce Pangco Pañares - Manila Standard Today
She signed Executive Order 660 tasking Internal Revenue and Customs to review the duties on excess importation amid reports the government loses at least P65 billion in foregone taxes annually on motor vehicles alone.
“There is a need to ensure that the raw materials, capital goods and equipment imported byregistered enterprises [in Subic] are only those required for their business activities and operations,” Mrs. Arroyo said.
“Importations in excess of those requirements... shall be deemed brought into or sold within the Customs territory and therefore subject to taxes,” she said.
She ordered Customs, Internal Revenue and the Subic Bay Metropolitan Authority to issue the corresponding circulars explaining her order, saying the government needed to plug tax loopholes to collect more revenue to finance economic development.
SBMA chairman Feliciano Salonga and administrator Armando Arreza said they had yet to see a copy of the new executive order.
Salonga said excess importation could be considered another form of smuggling, adding the free port had always been plagued by it.
Antonio Villar, head of the Presidential Anti-Smuggling Group, said the International Monetary Fund had estimated that the Philippines’ revenue losses on motor vehicles alone came to at least P13 billion a month. Joyce Pangco Pañares - Manila Standard Today
posted by OlongapoCity Zambales at
11:53 PM
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