@'beffilsntla W,iM
MONDAY September 16, 2019
'Govt urged to probe BoC,
steel ma kers' col usion
A lawmaker has called on the
government to look into an al-
leged collusion between officials
ofthe Bureau of Custoins (BoC)
and several big steel manufac-
turers, who may have deprived
the government of billions of
pesos in tax revenues, including
penalties for improper import
declarations.
Buhay Hayaang Yumabong
(Buhay) party-list Rep. Iose
"Lito" Atienza over the weekend
said the lost tar revenues that
could have gone to ihe govern-
ment's coffers were enough to
support social services and infra-
structure projects.
The House of Representatives
on Monday approved economic
tax reforms, including one remov-
ing restrictions on foreigners from
practicing their professions in the
Philippines, and another simplifi-
ing taxes on financial instruments.
"lnstead of introducing new
tax reforms to raise revenue for
the government's social services
and infrastructure programs, the
govemment should be look-
ing into the issue of smuggling
at BoC, especially steel," said
Atienza, who asked the bureau
to implement the pre-shipment
inspection ofall cargo vans com-
ing into the country
"The Customs Modernization
and Tariff Act was
passed in 2015, but it never
implemented the pre-inspection
. provision specified in Section
. 440 that container vans should
'
be inspected at their ports of
origin," he said.
"The huge amount of tax rev-
enues the government is losing
due to this malpractice could be
used to fund infrastructure proj-
ects under the President's Build,
Build, Build programs, particu-
Iarly those that.are intended to
\ ,aea-
I
alleviate the country's transporta-
tion syst€m to ease commuters'
daily burden," Atienza added.
Dante limenez, chairman of
the Presidential Anti-Corruption
Commission (PACC), has con-
firm€d that they were looking
into the possibility that impor-
tation documents submitted by
the big steel manufacturers was
a sign of misdeclaration.
Iirnenez said the PACC was in-
vestigating the real declared value
of the imported billets over the
past ten years, during which the
steelmakers declared differently,
enabling them to pay lower ta,\es.
Documents in the possession
ofthe PACC showed that import-
ed steel billets from several coun
tries displayed big discrepancies
in terms ofsize, descdption and
volume showing clear mis-
-
{eclalaqion and resulting in
improper taxes paid.
Last year, giant cigarette maker
Mighty Corp. paid nearly P40 bil'
lion to the Bureau oflnternal Rev'
enue (BIR) to setde tax deficiencies
as part ofa compromise deal that
allowed the company to walk from
criminal complaints filed before
the Department of Justic€.
Three tax evasion complaints
faulted the company for not
paying excise taxes on cigarelte
products and for using counter-
feit ta-r stamps on cigarette packs.
The BIR had valued the compa'
ny's combined ta,rdues, and other
fees and charges at P37.88 billion.
1he PACC is preparing tax eva-
sion cases against a leading steel
manufacturer and some BoC of[-
cials over lost revenues that should
have gone to the government.
Last month, President Rodrigo
Duterte singled out the BoC for
rampant colluption, and axed 64
ofits top officials and employees
for unethical practices.
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