TRO petition poised vs advance VAT on sugar

Sugar leaders are poised to file a petition for temporary restraining order (TRO) pending final action by Congress on remedial measures that would prevent further collection of advance Value Added Tax on refined sugar from sugar cooperatives.

This was learned Thursday when several big sugar leaders held a strategy session at the NAIA II following the hearings Wednesday of the Senate on the complaints by sugar cooperatives about the 12 percent advance VAT collection from sugar cooperatives.

Sen. Mar Roxas, who filed Senate Resolution 645 calling for the investigation into the controversial VAT collection, called it “an unjust tax.”

“The law clearly states the agricultural cooperatives are exempt from VAT but we are being deceived to think that this is only subject to certain conditions,” he said.

Sen. Juan Miguel Zubiri denounced the BIR policy as wreaking havoc among many sugar farmers in Bukidnon. He advised the sugar leaders to file a TRO pending final action by the Congress bicameral conference committee on his amendment to the Cooperative Code of 2008.

This was also the suggestion by Sen. Chiz Escudero, according to Roberto Cuneca, chairman of the Confederation of Sugar Cooperatives.

Jimmy Golez, of the National Federation of Sugarcane Planters, presided over the impromptu meeting that included Mike Hinojales of the Victorias Milling Co. and Toti Ramos, a tax consultant and cooperative expert.

Lawyer Enrique Barcelona outlined to the undersigned the three options of the sugar co-ops in seeking a TRO and an injunction to allow the courts to stop the BIR from further implementing the controversial measure.

But BIR regional director Rodita Galanto, who was in the vortex of the controversy, welcomed the move by the sugar co-ops. She said the BIR is set to implement Revenue Regulation 13-2008 in 15 days post its publication in The Philippine STAR.

This clarifies that the exemption applies only to cooperatives which own or lease lands that produce the sugarcane.

Thus, if a cooperative is not the agricultural producer of the sugarcane, the withdrawal of refined sugar, she added, is subject to advance VAT.

The new regulation stresses that no authorization allowing the release of refined sugar shall be released by the BIR to any cooperative that fails to submit the list of buyers with valid TINs and their list of inventory.

Unfazed by the barrage of verbal attacks against her, Galanto pointed out that the BIR had already collected a 100 percent advance VAT on refined sugar. And she also said the 60-40 arrangement with some cooperatives was temporary and 18 of the 23 sugar co-ops have already complied with it.

But Ramos pointed out that our “acquiescence does not automatically confer on the BIR the right to impose it.” Even Sen. Juan Ponce Enrile, the author of the exemption of sugar co-ops, pointed out on Wednesday that there is no such thing as advance VAT in the law, Ramos added.

Well, the controversy goes on. And the filing of the TRO plus injunction can more or less provide some clarification to the BIR’s position.

Bago City biofuel research center

Energy Secretary Angelo Reyes dubbed the Biofuels Research Center and Development Center in Bago City as the first of its kind in the country.

He lauded the private sector initiative in establishing the center for the young biofuels industry. The center rites were held at the Manuel Y. Torres Memorial Colisem and Cultural Center of the Bago City College campus Thursday.

A viable modeling of jatropha and moringa crops is being eyed by the province as an alternative to sugar to control the supply situation.

Reyes said the Bago model should be replicated in other provinces and local government units.

The program is a collaborative project led by Mayor Ramos Torres, Bago City College through Dr. Ramona Lamo; Buglas Fuel Biofuels Seedbank and Development Corp. headed by Roy Villa; Orion Energy Inc. and Avalon Development Inc. The DOE is a collaborating agency.

Among those who attended the rites were Energy Undersecretary Arnie Jane Borja, Negros Occidental Gov. Isidro Zayco, board member Mae Javellana, Mayors Alfonso Baguio of Calatrava, Salvador Escalante of Cadiz City, and German Sarana of Bayawan as well as Japanese partners, farmers’ groups and cooperatives and sugar industry officials.

Proof of its importance is that Reyes said the National Biofuels Board will invite the Bago consortium’s representatives during its meeting to discuss the Bago BDRC project.

Masskara is not enough – Durano

“Maskara is a good symbol to show the resilience and spirit of Bacolenos, but it is not enough to anchor product of tourism,” declared Tourism Secretary Ramons Durano yesterday at the 5th Regional Marketing Conference at Santuario de La Salle University.

That, to a certain extent, dampened the enthusiasm by Bacolodnons who are on the grip of Masskara fever for almost a month now.

In short, even if it is almost one-month long celebration, Masskara cannot be a sustaining attraction that could cajole foreign visitors to Bacolod and the province of Negros Occidental.

A major tourism attraction, he added, is something that must be experienced the whole year round. He cited Bohol and Palawan where their anchor tourism products are nature-based. Durano, married to Bacoleña Carmen Luzzuriaga, said he would like to see Bacolod become a major tourism destination like his hometown Cebu.

Alan Censoli, president of the Philippine Marketing Association-Bacolod, said his group is campaigning for Adventure Negros to identify nature-related activities in the province that can be enjoyed by tourists the whole year round.

Amen to that.