DOF to crack down on soda bottlers as TRAIN collections fall P10B short
Their first instinct is to blame manufacturers for tax evasion.
Finance Undersecretary Karl Kendrick Chua has ordered the Bureau of Internal Revenue (BIR) to check on the tax compliance of beverage manufacturers in the Philippines after discovering that excise tax collections are short by P10 billion as of October 2018.
The tax on sugar-sweetened beverages was expected to yield P40 billion for the first 10 months, but the actual turnout only stood at roughly P30 billion.
“My hunch is that those that are supposed to pay the P12 tax are only paying P6,” Chua said during a recent DOF Executive Committee meeting.
The law levies a P6-per-liter excise tax on drinks using caloric and non-caloric sweeteners and P12/liter on beverages using high-fructose corn syrup.
“The FDA (Food and Drug Administration) approved only the conversion for Coke, and that was just last August. So I think many are paying P6 when they should be paying P12. That is our concern. I suggest that the BIR conduct an audit (on these companies),” Chua said.
“They cannot just change the content per the FDA.”
Will heads roll over this? Abangan!