Roxas supports amendment of Cooperative Code
BACOLOD CITY -- Senator Manuel "Mar" Roxas supports the amendment of the Cooperative Code which will give clearer provision on the exemption of sugar cooperatives from paying the advance value added tax (VAT) on refined sugar.
He said the law is not clear and the Bureau of Internal Revenue (BIR) has also its own interpretation.
BIR representatives attended the Senate hearing and the senator asked them regarding its move to collect VAT from sugar cooperatives. "I have seen that their move to tax the sugar coops is only an interpretation of the BIR. There is no such language in the law which directs BIR to collect VAT from the sugar coops. We agree to disagree. There is a big difference insofar as their interpretation, my interpretation and the interpretation of some Senators of the law is concerned."
Roxas said through the amendment, "we will push a clear provision on the exemption of the sugar coops from advance VAT."
He said that it would take two months to complete the amendment.
The sugar cooperatives are encouraged to go to court and seek an injunction or temporary restraining order because the law is not clear.
The Cooperative Code states that sugar coops are exempted. But the Tax Code which was passed after the Cooperative Code is unclear. It only talked about their products. The BIR has interpreted that the sugar coops can only be exempted if they are the ones who plant, harvest and use the sugar that they sell. So the law is not clear, thus he will file an amendatory legislation to clear this matter and there will be no confusion on this issue.
Roxas also urged the new BIR Commissioner to learn to say "no" even to the President. "What is more important is that the new BIR Commissioner has a good track record, no bad record and has a political will to say No to whoever and even to the President. He or she should put the right people in BIR so that they can work effectively."
Roxas said that they cannot force the BIR to have a different interpretation and they will only move for the amendment of the law. "We will correct the letter of the law so that they will have no room for interpretation."
Roxas met with Sugar Regulatory Administrator Rafael Lito Coscolluela and discussed some important concerns of the sugar industry.
He also believes the reason for the low cost of sugar nowadays is due to smuggling and not due to the global economic meltdown.
"The milling season has just started but the cost of sugar is low. This means that there is a high supply of sugar. There is more supply of sugar in the world because of smuggling. Its important to put a stop on the sugar smuggling," he said.
It is also important to fast track the Ethanol production in the country because it is a way that the excess sugar will go to such production and it could stabilize the cost of sugar and gasoline in the country.