Roxas to call for Senate inquiry over taxing of sugar coops
SAGAY CITY – Senator Manuel "Mar" Roxas said that he will call for a Senate inquiry regarding the move by the Bureau of Internal Revenue (BIR) to tax the sugar cooperatives in Negros Occidental.
He said that the BIR cannot go beyond the provisions of law, when the law exempts these sugar cooperatives from the paying Value Added Tax (VAT).
"If in the law they are clearly exempted, then the BIR, the implementing agency cannot go beyond the letter of the law. We will invite the cooperative associations, sugar planters here in Negros to send me a letter and the details of this complaint so that we will call for an investigation why the BIR insists to impose VAT on them even if they are exempted according to the law," he said.
Thirteen heads of sugar planters associations here questioned the move of BIR OIC Regional Director Rodita Galanto to impose VAT on sugar cooperatives.
These sugar leaders who questioned the BIR's move are: Jaime G. Golez, President of the SAGESPLAS Association; Damian L. Pison, Chairman of the APP-Negros Farmers MPC; Lucio Ma. B. Barcelona, Jr., Chairman of ISEPI Multi-Purpose Cooperative; Atty. Arsenio Al Acuna, Chairman of the Negros del Norte Planters Association, MPC; Ramon D. Peñalosa, Jr., Chairman, Negros Agricultural Entreprenuers MPC; Luis Miguel C. Trebol, Chairman of the SAGESPLAS Multi Purpose Cooperative; Eduardo D. Gargar, Chairman, USETPAI Multi Purpose Cooperative; Jose Ma. Villanueva, Chairman, Dos Hermanas Multi-Purpose Cooperative; Fr. Armando B. Onion, Chairman, Ma-ao Parish Multi-Purpose Cooperative; Miguel S. Hinojales, Jr., Chairman, Negros Sugar Farmers MPC; Primo Esleyer, Chairman, Negros Sugar Farmers MPC; Paul M. Monfort, Chairman of the Sugarcane Growers MPC and Jose V. Ledesma IV, Chairman, VMC Farmers Cooperative, Inc.
The sugar leaders cited RA 8424, the Tax Reform Act of 1997, which has institutionalized the exemption of cooperatives on VAT under Section 109 (r) which includes the sales by agricultural cooperatives duly registered with the Cooperative Development Authority to their members as well as sale of their produce, whether it is original state or processed form, to non-members, their importation of direct farm inputs, machineries and equipment including spare parts thereof, to be used directly and exclusively in the production and/or processing of their produce.
Moreover, Roxas said that the high cost of fertilizer could not be attributed to a cartel. He said that fertilizer is more or less 70% dependent on petroleum.
"When I was head of the DTI, the cost of petroleum is $20 per barrel and now its $100 per barrel. In previous months it even went up to $130 per barrel. It is given that the cost of fertilizer will also go up. But the most important here is if the government wants to help on food self-sufficiency to our farmers, then take out VAT from fertilizer or give the farmers a fertilizer price support," he said.
Roxas came here last week to donate financial assistance to the Museo Pambata sang Negros in Sagay City.
Roxas was warmly welcomed by the residents of Sagay City and Sagay City Mayor Alfredo Marañon and Rep. Alfredo Marañon III.
He also graced the launching of the new Joseph Marañon Library and Exhibit at the Museo Pambata in in this city.