Sugar coops fail to get Arroyo's backing on tiff with BIR
BACOLOD CITY -- President Arroyo did not give in to the request of the sugar cooperative leaders to exempt sugar cooperatives from value added tax (VAT).
The president's position was disclosed by Sugar Regulatory Administrator (SRA) Rafael Lito Coscolluela who was among those who joined a private meeting with the president to discuss the state of the sugar industry.
Prior to the meeting Ms. Arroyo led the opening ceremony for the 29th Masskara Festival held at the Bacolod City plaza where she declared that food stability, including sugar, and food security are major priorities of the government.
Other key officials who attended the meeting were Governor Isidro Zayco and Bacolod City Lone District Rep. Monico O. Puentevella.
Coscolluela said, since certain issues between the sugar cooperatives and the Bureau of Internal Revenue (BIR) are already in court the president does not wish to intervene in any court cases.
"But in the meantime, the President has expressed concern that when you begin exempting certain sectors or commodities on the strength of unsubstantiated arguments like the cooperative's position, you are establishing a precedent and that may lead other commodities or sectors to organize cooperatives for the sake of tax exemptions. And ultimately, this is going to have an unfavorable impact on the country's position with our financiers because our revenue collections will be affected," Coscolluela said.
He said that the president does not wish to sacrifice revenue collection but she hopes that a possibility of a win-win approach could be reached.
"We are hoping that the collections from VAT on refined sugar and its increment or increase from the collections, as a result of non-exemptions, be set aside for programs that will provide fertilizer subsidies for the sugar industry. Our revenue collections will not be affected at the same time we could provide for the needs of the sugar industry," the president as quoted by Coscolluela cited.
Coscolluela added, "if we can work it out and find the mechanics quickly, this will all redound to the benefit of the sugar producers and therefore we could level the playing field. We think there is a good chance that we could put this together. We have to work out the details and the mechanics. We're looking for a win win solution. If they are not happy, maybe they are waiting for miracles which are not forthcoming."
Meanwhile, Congressman Puentevella will host the meeting of Coscolluela with the DTI Secretary Peter Fabila, Finance Secretary Margarito Teves, Agriculture Secretary Arthur Yap today in Congress.
They will discuss the position of the sugar industry on the re-classification of sugar to highly sensitive list.
In her speech when she opened the Masskara festival at the Bacolod City Plaza, the President revealed that one of the first things she did when she assumed the Presidency in 2001 was to make orders for a comprehensive plan for the sugar industry. The President said the government allocated 278 Million for the Agricultural Competitiveness and Enhancement Fund (ACEF) and to keep it competitive.
"We are experiencing hard times which are brought about by the Global economic slowdown" the President said. She added that this is a global phenomenon and is causing global difficulties.
President Arroyo assured the Negrenses that the government is working hard on all fronts to manage inflationary pressures, provide safety nets to those hit hardest and to deliver the growth that will generate jobs and revenues needed to invest in the nation's future.