Senate inquiry today on sugar coops’ VAT

Top government officials and sugar industry leaders are expected at a Senate Committee on Ways and Means public hearing 10 a.m. today at the Senate in response to an inquiry sought by Senator Mar Roxas on the Bureau of Internal Revenue collection of advance Value Added Tax from sugar cooperatives.

Among the resource persons from the government sector summoned to the hearing are secretaries Margarito Teves – Finance, Peter Favila – Trade and Industry and Arthur Yap – Agriculture.

Roxas sought the inquiry after a visit to Negros Occidental where some sugar cooperatives complained that they were being taxed for their refined sugar when they should be exempted.

Roxas filed a Senate resolution asking the appropriate committees to conduct an inquiry in aid of legislation on the collection of the advance VAT not withstanding the tax exempt status of cooperatives under the Cooperative Code of the Philippines and the National Internal Revenue Code of 1997, to determine appropriate measures.

President Gloria Macapagal Arroyo last week suggested that the Advance VAT collected on refined sugar from cooperatives be plowed back to the sugar industry as a fertilizer subsidy. Sugar Regulatory Administrator Rafael Coscolluela said Teves is set to issue a new revenue resolution on the matter this week.

Other government officials summoned to the Senate committee hearing today are Coscolluela, BIR Commissioner Lilian Hefti, Executive Director Lina Isorena of the National Tax Research Center and Chairman Lecira Juarez of the Cooperative Development Authority.

Expected from the sugar federations are Gerra Aquino – Sugar Alliance of the Philippines, Jesus Barrera – Philippine Sugar Millers Association, Enrique Rojas – National Federation of Sugarcane Planters, and Jose Ramos, Lucio Barcelona and Enrique Barcelona of the Confederation of Sugar Producers Cooperatives.

From the cooperatives, invited are the following chairmen: Jo-Ann Griño – of the Greater Bukidnon Multi-Purpose Cooperative, Rene Limpin – Central Azucarera de Tarlac Planters Cooperative Marketing Association Inc., Vice Governor Marcelino Aganon – CAR Planters Association Inc.;

Romulo Pantoja – Batangas Sugar Planters Cooperative Marketing Association Inc., Carlos Didaurrazaga – Kabankalan Farmers Multi-Purpose Cooperative and Miguel Hinojales – Negros Sugar Farmers Multi-Purpose Cooperative.*CPG