BIR urges Butuan bizmen to pay excise tax for cigarettes
By Jennifer P. Gaitano
BUTUAN CITY – Following the disposition on Monday of smuggled cigarettes by the Bureau of Internal Revenue (BIR) Revenue, sari-sari store owners and vendors appealed to business enterprises to comply with tax laws particularly the excise taxes for cigarettes.
Ellen “Lyn-lyn” Yasay, a food vendor and sari-sari store owner in Barangay Imadejas, Butuan City, expressed her support to BIR’s mandate in running after smugglers and tax evaders.
“Mamalit ko sa mga ibaligya nga sigarilyo didto man sa dagko nga tindahan, so ako gilaoman nga tanan nilang produkto hilabi na kadtong gikan pa sa laing nasud nga miagi gayud sa tamang proseso ug gabayad sa saktong buhisan,” she said.
(I usually buy cigarettes at big convenience stores near our store, so I’m expecting that all the products they are selling, especially those that come from other countries have undergone the necessary procedures before selling it to the public, and that they have paid the right taxes.)
“Kami nga mga gagmay nga mga negosyante, dili mi gusto madamay sa illegal na mga pamaligya sa produkto sama sa sigarilyo ug uban pa kay pila ragud among kita kada adlaw,” added Yasay.
(As micro entrepreneurs, we do not want to be involved in this illegal activity such as selling products like cigarettes without paying the right taxes. We only get minimum profit from our small business daily.)
Regional Director Jose Eric Furia of BIR Revenue Region No. 17 in Butuan City stressed that this activity will help raise awareness about the detrimental effects of illicit trade and the importance of compliance with regulations.
Per BIR’s data, a total of 337,644 packs of illicit cigarettes or 97% which is worth more than P219 million were incinerated or burned at the broilers to ensure that these will no longer be used. The remaining 3% of the seized illicit cigarettes will serve as evidence while appropriate cases against smugglers are filed in court.
“Through our Commissioner Romeo Lumagui Jr., our office has been implementing the excellent taxpayer services and aggressive enforcement activities to include the ‘Oplan Kandado’ to business establishments that do not pay the right taxes, and the RATE or the Run After Tax Evaders, among others,” underscored Furia.
“Most of those who are selling illicit cigarettes are smugglers, that’s why our actions should be organized, otherwise it will affect our operation in running after these people. BIR does not operate alone, we need the collaboration with the PNP and other law enforcement agencies, even the Philippine Coast Guard, to ensure safe and successful operation,” he added.
When asked about the status of the Caraga region when it comes to the number of smugglers monitored, Dir. Furia revealed that there are still many who engage in such illegal activity while many also patronize knowing that products are being sold at a much cheaper price.
Furia explained that an excise tax is a duty imposed on manufactured goods that is normally levied at the moment of manufacture for internal consumption rather than at sale. It is therefore a fee that must be paid in order to consume certain products.
During the incineration of illicit cigarettes, Furia was joined along with the Revenue District Officers of the different provinces in Caraga region, and representatives from partner government agencies to include the Department of Trade and Industry (DTI), Department of Health (DOH), Environmental Management Bureau (EMB), and Philippine Information Agency (PIA).
The BIR Revenue Region No. 17 further assured that through their Regional Investigation Division, the conduct of covert surveillance to businesses will continue to confiscate smuggled products and arrest violators.
BIR is under the supervision and control of the Department of Finance (DoF) and its powers and duties shall comprehend the assessment and collection of all internal revenue taxes, fees, and charges, and the enforcement of all forfeitures, penalties, and fines connected therewith, including the execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts. The Bureau shall give effect to and administer the supervisory and police powers conferred to it by this Code or other laws. (JPG, PIA-Caraga)
