Govt curbs oil smuggling
The Department of Finance has acted to curb rampant oil smuggling in the country that resulted in billions of pesos in lost revenues by imposing mandatory marking on imported crude and petroleum products starting next week.
Finance Secretary Margarito Teves signed an order mandating the marking of imported kerosene and fuel oils that enter tax and duty-free to prevent their unauthorized diversion to the domestic market.
“There are reliable reports that said tax and duty-free articles have subsequently entered the domestic market illegally without the payment of the proper duties and taxes resulting in huge revenue losses to the government and to legitimate oil companies,” Teves said.
The finance chief stressed in a four-page order the need to adopt measures to ensure the proper collection of duties and taxes on all fuel oils shipped on an exempt basis.
Starting Aug. 15, the Bureau of Customs will adopt the mandatory marking of all kerosene products subject to zero excise tax and all diesel oil for which exemption from the payment of duties and taxes are claimed imported through the Subic Bay Freeport, Clark special economic zone and Port of Batangas.
Teves said the marking would help properly identify and track fuel oils shipped into the Philippines without the payment of duties and taxes and plug the revenue leakage on imported fuel oils that are diverted into the domestic market.
He added the mandatory marking would provide a necessary tool and evidence for the prosecution of individuals who do not pay the proper duties and taxes for fuel oils sold in the domestic market.
The order calls for the creation of a Program Implementation Office that will oversee the implementation of the mandatory marking requirement in Subic Bay, Clark, and Port of Batangas.
The Presidential Anti-Smuggling Group headed by Undersecretary Antonio Villar Jr. has unearthed P3 billion worth of smuggled oil products involving 138 million liters of oil in the last six months coursed through the Subic Bay Freeport by Tri-Solid.
After disappointing collections in the first half of the year, President Gloria Macapagal Arroyo has ordered Customs to intensify its anti-smuggling efforts amid suspicions that oil imports were entering the country without payment of proper duties.
Customs, the second-biggest revenue earner for the government after the Bureau of Internal Revenue, missed its collection target of P105.3 billion in the first semester by P13 billion. On the other hand, the tax take of the BIR was P38.6 billion short of the programmed collection of P373.3 billion.
According to the tax audit group of the finance department, Customs failed to collect P1 billion in duties and excise taxes on imported oil in the first quarter of the year, resulting in lower-than-programmed collections.
By Lawrence Agcaoili - Manila Standard Today
Finance Secretary Margarito Teves signed an order mandating the marking of imported kerosene and fuel oils that enter tax and duty-free to prevent their unauthorized diversion to the domestic market.
“There are reliable reports that said tax and duty-free articles have subsequently entered the domestic market illegally without the payment of the proper duties and taxes resulting in huge revenue losses to the government and to legitimate oil companies,” Teves said.
The finance chief stressed in a four-page order the need to adopt measures to ensure the proper collection of duties and taxes on all fuel oils shipped on an exempt basis.
Starting Aug. 15, the Bureau of Customs will adopt the mandatory marking of all kerosene products subject to zero excise tax and all diesel oil for which exemption from the payment of duties and taxes are claimed imported through the Subic Bay Freeport, Clark special economic zone and Port of Batangas.
Teves said the marking would help properly identify and track fuel oils shipped into the Philippines without the payment of duties and taxes and plug the revenue leakage on imported fuel oils that are diverted into the domestic market.
He added the mandatory marking would provide a necessary tool and evidence for the prosecution of individuals who do not pay the proper duties and taxes for fuel oils sold in the domestic market.
The order calls for the creation of a Program Implementation Office that will oversee the implementation of the mandatory marking requirement in Subic Bay, Clark, and Port of Batangas.
The Presidential Anti-Smuggling Group headed by Undersecretary Antonio Villar Jr. has unearthed P3 billion worth of smuggled oil products involving 138 million liters of oil in the last six months coursed through the Subic Bay Freeport by Tri-Solid.
After disappointing collections in the first half of the year, President Gloria Macapagal Arroyo has ordered Customs to intensify its anti-smuggling efforts amid suspicions that oil imports were entering the country without payment of proper duties.
Customs, the second-biggest revenue earner for the government after the Bureau of Internal Revenue, missed its collection target of P105.3 billion in the first semester by P13 billion. On the other hand, the tax take of the BIR was P38.6 billion short of the programmed collection of P373.3 billion.
According to the tax audit group of the finance department, Customs failed to collect P1 billion in duties and excise taxes on imported oil in the first quarter of the year, resulting in lower-than-programmed collections.
By Lawrence Agcaoili - Manila Standard Today
Labels: clark, customs, oil, smuggling, Subic Freeport, Tri-Solid
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