By Eugene Y. Adiong
The Sugar Regulatory Administration (SRA) is helping the Bureau of Internal Revenue (BIR) to address the complaints of sugar planters on the P1 tax it plans to impose on raw sugar, administrator Regina Bautista-Martin said yesterday.
Martin said that she has listened to the complaints from traders and planters and relayed it to the BIR national office.
GOVERNOR ALFREDO MARANON JR. and Alfredo Pascual, president of the University of the Philippines system during yesterday’s inauguration of the Negros Occidental Technology Business Incubation Center (TBIC) located at the Negros First Cyber Centre in Bacolod. Also present - Rowen Gelonga, regional director of the Department of Science and Technology in Western Visayas, and Bacolod City Councilor Jocelle Batapa-Sigue, executive director of Bacolod-Negros Occidental Federation for Information and Communications Technology (BNEFIT)* (Arman Toga)
COURTESY CALL: Miss MassKara Queen Vancouver Canada 2006 Aleah Kaye Cepe and her family visited Bacolod City Mayor Monico Puentevella at the People’s House yesterday.* (CMO-PIO photo)
“They said the BIR will issue a new memorandum circular that will clarify issues on the P1 withholding tax on raw sugar,” she said.
Most of the complaints questioned why the BIR will impose a tax exclusively on raw sugar, Martin said.
Under the rules, BIR created a separate sub-section for the withholding of creditable income tax on locally produced raw sugar given the peculiarity of operations by the sugar firms.
Under the new rules, proprietors or operators of sugar mills/refineries and direct buyers of quedans or molasses storage certificates from the sugar planters on locally produced raw sugar and molasses shall withhold the creditable income tax and remit the same to the BIR based on the applicable base price of P1,000 per 50 kilogram bag and P4,000 per metric tons, respectively.
This, however, is subject to adjustment deemed necessary by the BIR commissioner upon consultation with the SRA administrator.
The regional director through the recommendation of the Revenue District Officer, who has jurisdiction over the physical location of the sugar mills and refineries shall issue the authorization allowing the release of locally produced raw sugar/molasses to the proprietors or operators for further processing into refined sugar, consumption or other purposes.
The authorization, however, will only be issued when copies of proofs of payment of the creditable withholding tax due thereon and bank payment/deposit slip/official receipt shall have been submitted and attached to the written request.
A one percent creditable withholding tax will also be imposed on income payments made to agricultural suppliers but not limited to payments made by hotels, resorts, caterers, food processors, canneries, supermarkets, livestock, poultry, fish and marine product processors, factories, furniture shops and all other establishments in excess of the cumulative amount of P300,000 within the same taxable year.