Sunday, January 6, 2013

New Sin Taxes don’t benefit Region 1- BIR


By Mortz C. Ortigoza
CALASIAO – The assistant regional director of the Bureau of Internal Revenue in Region-1 said the P33 billion tax hikes the government could collect this year from cigarette, beer and liquor would not benefit the tax goal given to the regional office.
Last year BIR-Region 1 has been given a tax target of more than seven billion pesos.
Lawyer Edgar Pagulayan explained that the P33 billion that would be generated by Republic Act No. 1035, an act restructuring the excise tax on alcohol and tobacco products, known as Sin Taxes. would all be siphoned by the large taxpayer division of the tax agency main office in Manila.
“It would only the large taxpayers that would benefit on the new spikes,” he stressed.
Pagulayan said it was hard to prove hoarding of “Sin” products after shrewd and greedy businessmen have been hoarding them since January 1, the first day of the implementation of RA No. 1035.
The hoarding, according to media reports in Pangasinan, skyrocketed the prices of these products, with the price of a stick of Marlboro cigarette increasing from P2 to P4.
“Mahirap i-prove iyang pag ho-hoard ng mga ta-o. Kilo ba ang basis? Kailangan i-define mo kung ilang boxes ba ang susundan natin sa hoarding,” he said.
Assistant Revenue District Office -4 chief Charmaine dela Torre said her husband , also a BIR official, told her that they should have bought by bulk Novellino Sparkling Red Wine last December as gifts to their friends on this year’s Christmas season. “We could have saved an arm and a leg,” she said.
According to the BIR Revenue Memorandum Circular No. 90-2012 given to this paper by dela Torre, a net retail price of a bottle of 750 millimeter Novelino Sparkling that has a net retail price of P109.23 in year 2010 would be stamped by a hefty P 250.00 as a new tax.
A net retail price of a 330 ml bottle of San Miguel Lights and a 500 ml bottle of a Red Horse beer that command a price of P47.99 and P38.97 in 2010 would be imposed with new taxes of P20.27 and P15, respectively.
A 10-stick half pack Marlboro Filter Flip Top cigarette and a one pack 20-stick Winston Lights (box) cigarette that were priced P8.27 and P16.15 in 2010 would be stamped with a P12 and P25, respectively.
There are hundreds of tobacco and liquor products that are affected by the new tax hikes.

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