|
THE
Philippine Federation of Pre-Need Plans Companies Inc. (PFPPCI)
said a proposed tax increase by the Bureau of Internal
Revenue (BIR) would hurt the industry and eventually
push companies to close shop.
In a
press briefing Tuesday, PFPPCI vice president for
education Jose Alberto T. Alba said a looming increase
in value-added tax (VAT) expenses would mean higher
premiums for pre-need products like life, education and
pension plans.
“If that
happens, I don’t think customers will still be enticed
to buy our products. The returns on the clients’
investments will also suffer, thus making preneed
products not competitive to other investment products in
the market,” said Alba, who is also the president of
Prudentialife Plans Inc.
PFPPCI,
which has 21-member-companies, has requested for a
dialogue with the officials of the BIR on the VAT issue.
Jesusa
Concepcion, chairman of Loyola Plans Consolidated Inc.
and treasurer of the federation, said they are hoping
for the government to consider their position and give
them the opportunity to make their operations afloat
amid the challenging situation.
The BIR
earlier said it will audit preneed firms as part of its
effort to raise more revenues and meet its targets.
Commissioner Lilian Hefti has directed the
large-taxpayers service and revenue-district offices to
preaudit preneed firms to ensure that the taxable base
for payment of the VAT will be gross receipts without
any deduction, particularly the trust fund.
The
preneed industry is currently valued at P70 billion in
terms of total- trust fund. |
