ITR of rice importers, gov’t contractors to be checked
MANILA – The government’s bid against tax evasion will also check on government-accredited rice importers and contractors to check if these are paying correct taxes.
Thus, Finance Secretary Cesar Purisima has ordered the National Food Authority to submit its list of rice importers and the Department of Public Works and Highways its list of top contractors.
He said income tax return of these importers and contractors will be reviewed by the Department of Finance and the Bureau of Internal Revenue.
“We will leave no stone unturned in fight against tax evasion,” he said.
Purisima explained that “given the volume of importation, there are substantial volume that should be subject to tax.”
He said they will check the ITR of officials involved in rice importation.
“We’ll do lifestyle check,” he said.
Meanwhile, Purisima reiterated their plan to “revisit functions of the NFA.”
“Regulatory function should stay, warehousing and price stability functions should be limited,” he said.
NFA has been among the government agencies mentioned by President Benigno Aquino III in his State of the Nation Address last Monday as among those putting burden on the government’s fiscal health.
As of end-2009, NFA’s deficit reached around P171 billion, which Purisima said is way to high after only registering P45 billion deficit at end-2004.
Purisima said “subsidy should be consolidated with the Department of Social Welfare and Development.”
He earlier disclosed their plan to cut NFA resources because of the agency’s ballooning deficit.
Abolition of NFA needs Congress’ approval, he said “but we can implement some of the changes by limiting the resources available and by doing directional management.”
Purisima said they will vie for the cut in subsidies for NFA but this will not happen this year since the rest of the year will be a transition period for the new administration.
Instead of subsidies to NFA, the Finance chief said the budget will be allocated to the conditional cash transfer being implemented by the DSWD.
