Sen. Zubiri backs sugar planters vs. BIR
BACOLOD CITY -- Senator Juan Miguel "Migz" Zubiri supports the cause of the sugar planters and its cooperatives against the alleged harassment of the Bureau of Internal (BIR) in imposing value added tax (VAT) among sugar cooperatives.
Zubiri was here to speak before the Asociacion de Agricultores de La Carlota y Pontevedra, Inc. during their General Meeting held Saturday.
He said that he already had a solution on this problem as they passed already on third reading the amendments to the Cooperative Code of the Philippines that "we should put stronger incentives for all cooperatives by way of tax exemptions and VAT- free on sale of products.
He cited that under Article 137 (Repealing clause): BIR has issued an internal Revenue Regulation Orders where they placed there that cooperatives are still subject to VAT.
"Under the new Cooperative Code, we have specified that cooperatives are exempted from all taxes and we put another repealing clause under Article 137, which will repeal Revenue Regulation No. 20, Series of 2001 and other BIR Circulars and Memorandum Orders. The new law I passed on third reading will repeal all BIR and DOF circulars referring to cooperatives," he said.
He added that under Art. 134, (Penal provisions), the cooperative or any of its members can file a case against an officer of the BIR or any government agency that abuses or circumvents the tax incentives under this Code. The case can be filed before the Ombudsman, Civil Service Commission and any courts of law.
He added that the problem is not only unique to Negros as similar problem also happens in Bohol and all cooperatives in country that have experienced harassment from the BIR.
"Imagine, you are a farmers' cooperative with 200 family members. You produce vegetables and sell it to the markets. You mean that they will be taxed 15% VAT? That's ludicrous. The essence of the law is that we can sell products in affordable prices from the cooperatives," he said.
Zubiri also added that he is doing two things for the industry by continuously fighting for the continued listing of sugar in the highly sensitive list. Secondly, there is a need to diversify to Ethanol because by 2009,222 million liters will be required by all gas companies.
"And as of now, the production is only 40 million because of the entry of San Carlos with 30 million per year and Leyte Agri with 10 million liters. La Carlota, by 2009, they will be on line for another 30 million. All in all, we have 70 million and we are lacking 150 million liters of Ethanol," he said.