Govt moves to settle Japanese VAT claims
Manila Standard Via Thomson Dialog NewsEdge
The government has vowed to hasten the payment of the value added tax claims of Japanese contractors and consultants amounting to P1.16 billion.
Finance Secretary Margarito Teves told reporters yesterday that the Department of Finance is coordinating with the Department of Public Works and Highways, Philippine Ports Authority and the National Irrigation Authority to validate the unpaid VAT claims worth P736 million of Japanese contractors and consultants for yen loan projects.
"We are doing some validation work right now with the DPWH, NIA and PPA. We should be able to come up with a reconciled figure and start paying the amount based on the reconciled figure," Teves said.
He added that the government has already settled 82 percent of the P423 million VAT claims of Japanese contractors for grant aid projects.
Teves said the balance of 18 percent or P74.5 million would be paid within 2006.
Under the exchange of notes between the governments of the Philippines and Japan, Manila or its implementing agencies would assume all fiscal levies and taxes imposed on the Japanese companies operating as suppliers, contractors and consultants on the income accruing from the supply of products and services.
However, the Bureau of Internal Revenue continues to collect the 10 percent VAT from Japanese contractors as the National Internal Revenue Code does not exempt contractors and consultants of projects funded by overseas development assistance (ODA) funds although loan agreements stipulate that VAT collected should be refunded.
The finance chief met with Japan Bank for International Cooperation (JBIC) director general for development assistance department Takeo Matsuzawa and director general for international finance department Kazunori Nishida during a road show in Tokyo last week.
"They are pleased with the direction that there is an honest effort to settle this (VAT claims)," he said.
JBIC is the major source of Official Assistance Development (ODA) funds for the Philippines. Loans and grants extended by JBIC carry low interest rates ranging from 0.4 percent to 1.5 percent payable in 30 years to 40 years plus a 10-year grace period.
Since 1971, JBIC has funded 263 ODA projects in the Philippine valued at P1 trillion. The outstanding obligations of the Philippines to JBIC amounted to P475 billion as of 2004.
Projects funded by JBIC include the P21 billion Subic-Clark-Tarlac expressway, the P20 billion Calaca two coal-fired thermal power plant, the Subic Bay and the Batangas City ports, and the Mindanao Container Terminal.
The Japanese bank also has interests in the Ninoy Aquino International Airport-2, the Mactan International Airport, and the new Iloilo Airport.
Finance Secretary Margarito Teves told reporters yesterday that the Department of Finance is coordinating with the Department of Public Works and Highways, Philippine Ports Authority and the National Irrigation Authority to validate the unpaid VAT claims worth P736 million of Japanese contractors and consultants for yen loan projects.
"We are doing some validation work right now with the DPWH, NIA and PPA. We should be able to come up with a reconciled figure and start paying the amount based on the reconciled figure," Teves said.
He added that the government has already settled 82 percent of the P423 million VAT claims of Japanese contractors for grant aid projects.
Teves said the balance of 18 percent or P74.5 million would be paid within 2006.
Under the exchange of notes between the governments of the Philippines and Japan, Manila or its implementing agencies would assume all fiscal levies and taxes imposed on the Japanese companies operating as suppliers, contractors and consultants on the income accruing from the supply of products and services.
However, the Bureau of Internal Revenue continues to collect the 10 percent VAT from Japanese contractors as the National Internal Revenue Code does not exempt contractors and consultants of projects funded by overseas development assistance (ODA) funds although loan agreements stipulate that VAT collected should be refunded.
The finance chief met with Japan Bank for International Cooperation (JBIC) director general for development assistance department Takeo Matsuzawa and director general for international finance department Kazunori Nishida during a road show in Tokyo last week.
"They are pleased with the direction that there is an honest effort to settle this (VAT claims)," he said.
JBIC is the major source of Official Assistance Development (ODA) funds for the Philippines. Loans and grants extended by JBIC carry low interest rates ranging from 0.4 percent to 1.5 percent payable in 30 years to 40 years plus a 10-year grace period.
Since 1971, JBIC has funded 263 ODA projects in the Philippine valued at P1 trillion. The outstanding obligations of the Philippines to JBIC amounted to P475 billion as of 2004.
Projects funded by JBIC include the P21 billion Subic-Clark-Tarlac expressway, the P20 billion Calaca two coal-fired thermal power plant, the Subic Bay and the Batangas City ports, and the Mindanao Container Terminal.
The Japanese bank also has interests in the Ninoy Aquino International Airport-2, the Mactan International Airport, and the new Iloilo Airport.
posted by OlongapoCity Zambales at
1:45 AM
0 Comments:
Post a Comment
<< Home