EVAT hits marble, other exports 05-11-20

	NORDIS WEEKLY November 20, 2005
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EVAT hits marble, other exports
BAGUIO CITY (Nov. 16) — The expansion of the coverage of the value added tax (VAT) will surely affect the country’s export industry, a director of the Philippine Mining Safety and Environment Association (PMSEA) told the Baguio-based media in a press conference. “The VAT is (going to be) one of our biggest problems now,” Annie Dee, PMSEA director said. Though marble is a zero-VAT export commodity, Dee said Meralco collects a 10% VAT on the energy her company uses. She adds that the amount is so large because in mining the energy consumption is in serious figures. She underscored the importance of gathering other exporters and talking things over with concerned government agencies like the Bureau of Internal Revenue (BIR). “Lahat ng exporters ay tatamaan,” (All exporters would be hit) she disclosed, she added. According to Dee, her company’s power cost can go as high as P3 million a month that 10% of this is still a very handsome sum. She related that she was advised to go for a certification for a refund from the BIR. However, it is not easy for exporter to do what they were not used to do. “We cannot pass on to our clients the said additional costs,” Dee complained. In the export industry, the foreign country may still impose tariffs from suppliers instead of exporters imposing on the customers, she explained. A chain of events will surely follow the VAT imposition on power and oil. According to Dee, the salaries of workers, the effect on the National Power Corporation and a litany of other effects on the mining industry and the entire Philippine economy will surely rise. Nevertheless, she said mining investments are long-term and these (EVAT) are but temporary issues. She gives the government one year or so to fine-tune its programs. She was hoping, however, that the major impact of the VAT could be mitigated by mechanisms that will eventually return to the investors their expenses. “It can be in terms of tax credits,” she said. The expanded VAT took effect on Nov. 1 after the Supreme Court lifted its suspension. # Lyn V. Ramo for NORDIS
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	NORDIS WEEKLY November 20, 2005
Home \| To bottom	Previous \| Next
EVAT hits marble, other exports
BAGUIO CITY (Nov. 16) — The expansion of the coverage of the value added tax (VAT) will surely affect the country’s export industry, a director of the Philippine Mining Safety and Environment Association (PMSEA) told the Baguio-based media in a press conference. “The VAT is (going to be) one of our biggest problems now,” Annie Dee, PMSEA director said. Though marble is a zero-VAT export commodity, Dee said Meralco collects a 10% VAT on the energy her company uses. She adds that the amount is so large because in mining the energy consumption is in serious figures. She underscored the importance of gathering other exporters and talking things over with concerned government agencies like the Bureau of Internal Revenue (BIR). “Lahat ng exporters ay tatamaan,” (All exporters would be hit) she disclosed, she added. According to Dee, her company’s power cost can go as high as P3 million a month that 10% of this is still a very handsome sum. She related that she was advised to go for a certification for a refund from the BIR. However, it is not easy for exporter to do what they were not used to do. “We cannot pass on to our clients the said additional costs,” Dee complained. In the export industry, the foreign country may still impose tariffs from suppliers instead of exporters imposing on the customers, she explained. A chain of events will surely follow the VAT imposition on power and oil. According to Dee, the salaries of workers, the effect on the National Power Corporation and a litany of other effects on the mining industry and the entire Philippine economy will surely rise. Nevertheless, she said mining investments are long-term and these (EVAT) are but temporary issues. She gives the government one year or so to fine-tune its programs. She was hoping, however, that the major impact of the VAT could be mitigated by mechanisms that will eventually return to the investors their expenses. “It can be in terms of tax credits,” she said. The expanded VAT took effect on Nov. 1 after the Supreme Court lifted its suspension. # Lyn V. Ramo for NORDIS
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