The Philippine Tobacco Growers Association (PTGA) reiterated on Wednesday the interest of tobacco farmers in the country will be best served if cigarette manufacturers that process their produce into finished products pay the right amount of duties and taxes.
“The best way for the cigarette manufacturers to support the welfare of the country’s tobacco farmers is to pay the correct taxes to the government,” PTGA President Saturnino Distor asserted.
On Tuesday Finance Secretary Carlos G. Dominguez III pointed out the Bureau of Internal Revenue (BIR) has acted with total responsibility in response to Mighty Corp.’s statement that the bureau’s pronouncements on the cancellation of its license to operate due to tax-evasion charges will impact its employees and tobacco farmers the most.
Mighty Corp. also on Monday asked the BIR to reconsider its statement on the cancellation of its license over tax-evasion charges, as it will affect around 7,000 of its employees and 55,000 tobacco farmers.
Mighty Corp. Executive Vice President Oscar Barrientos pointed out the bureau should “act more responsibly in making statements, and take into consideration the repercussions of a cancellation of the license of the company”.
“Under the law, 15 percent of total revenues collected from excise taxes go to infrastructure projects and livelihood programs that help improve the lives of tobacco farmers and tobacco farming regions across the country,” Distor said.
The finance chief pointed out citizens are duty bound to pay the right amount of taxes and duties, and that failure to do so may consequently affect employees and its stakeholders.
“Really?! Goddamn it. Really, somebody doesn’t pay his taxes? Let’s say I don’t pay my tax, and say hey, don’t put me in jail, my maid will lose her job’, come on! Why don’t people think about those things. That is not your duty, that is your obligation to pay taxes. Why don’t you think about those things? Who is the one putting them out of a job? Their employees are at risk, of course, but who put them at risk?” Dominguez said.
Earlier, the BIR has filed a P9.6- billion tax-evasion case against the controversial tobacco firm at the Department of Justice (DOJ) after five of its warehouses in the Pampanga area were found to be housing cigarette packs bearing fake tax stamps.
“It is your responsibility. And you have a responsibility to your stakeholders, you are a private company, and one of your obligations is to make sure that your stakeholders are safe,” Dominguez said.
Earlier in April, the Bureau of Customs denied Mighty Corp.’s motion to temporarily lift the suspension of its import permits, pointing out that the firm lacked documentation to support its request.