The Bureau of Internal Revenue Region 12 in Bacolod City is banking on more collections from Value-Added Tax on refined sugar to achieve its P4 billion revenue goal this year.

“With the help of the sugar industry, we will increase our collection as far as advanced VAT on sugar is concerned,” BIR 12 Regional Director Rodita Galanto said.

In 2007, BIR Region 12, comprised of revenue offices in Negros and Siquijor islands, collected more than P248. 9 million from advanced VAT on sugar which is 7.28 percent of its total revenues, among the highest in terms of distribution by tax type.

The highest is withholding tax on wages P964.915 million (28.21 percent); followed by creditable tax, P348.4 million (10.19 percent); and wholesale and retail trade, P263.698 million (7.71 percent).

Galanto said at the recent launching of the 2008 Tax Campaign that some sugar producers’ cooperatives are supportive of their tax collection efforts because they continue to pay the advanced VAT on sugar even if they have already obtained exemption.

In October last year, Commissioner Lilian Hefti said the BIR was holding dialogs with sugar industry leaders to thresh out unclear provisions of Revenue Regulation 6-2007 which requires advance payment of VAT the sale of refined sugar.

Hefti had also said the BIR will come up with an improved version of tax regulations that will properly address the problems of the industry and lead to the collection of correct taxes from sugar producers.*NLG

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