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  • ‘No new taxes, just plug smuggling loopholes’

     

    SENATORS on Monday firmed up their position to block passage of any new tax bills in Congress after confirming rampant smuggling activities at various ports and eco zones “apparently” in collusion with erring customs officers.

    Sen. Francis Escudero, Senate ways and means chairman, reported that testimonies obtained by the committee at a public hearing on unabated smuggling “lend credence to our position that there is no need for new taxes” as government could very well raise revenues to bankroll public programs by waging a no-nonsense crackdown to plug the gaping tax loopholes.

    After grilling invited witnesses, including top Customs officials and importers, Escudero said it was clear that no smuggling activity at any of the country’s ports of entry could take place without the complicity of the assigned revenue collectors.

    For instance, he said the committee learned at the hearing that most smuggling activities involving imported vehicles, agriculture products, arms, furnitures, among others, were covered by supposedly official documents, “So how could these have been sneaked in without the collusion of the officials concerned?”

    Escudero lamented, however, that Customs Commissioner Napoleon Morales himself “gave no acceptable answer” to explain the huge discrepancy in the volume of imported goods that entered the ports and the amount of taxes collected from them. “If the volumes are misstated, what more with the content?”

    Sen. Juan Ponce Enrile confronted the Customs chief with transactions ranging from alleged technical smuggling to incentives that Morales reportedly awarded to himself and other “undeserving” Customs personnel.

    Morales also came under fire from Federation of Phil. Industries president Jesus Arranza and Presidential Antismuggling Group chief Antonio Villar.

    Enrile, who initiated the Senate inquiry on alleged anomalies at Customs, played a video of completely-built units of vehicles rolling off a ship in what Morales identified as the Port of Manila. The senator then proceeded to question Morales on the large-scale importation of CBUs by some local car manufacturers, when the government was supposed to have an existing progressive car manufacturing program (PCMP) that grants tax incentives to companies that assemble their vehicles here.

     “I would like to find out if indeed we have PCMP to be protected because if majority of the cars being marketed in the country are actually built in other countries, then we are fooling ourselves… we are subsidizing foreign labor to the detriment of our own people and especially consumers of cars,” Enrile demanded.

    Briefing reporters after the hearing, Escudero explained that technical smuggling could be established if it is proven that the manufacturers were availing themselves of the incentives undeservedly, and if they were not paying the correct customs duties for bringing in CBUs. -- B. Fernandez

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