The chairman of the House of Representatives’ Committee on Ways and Means has expressed gratitude to Finance Secretary Carlo Dominguez for the Department of Finance’s directive to require that registration with tax authorities be in full order before firms, especially those producing regulated products such as cigarettes, are allowed to operate in freeports and ecozones controlled by the Philippine Economic Zone Authority.
Albay Rep. Joey Sarte Salceda said he was elated that the Finance department responded to his request, by way of a directive, that registration, monitoring and law enforcement for cigarettes be strengthened to combat illicit tobacco trade.
In his letter to Trade Secretary Ramon Lopez who supervises PEZA, Dominguez said that the DOF-led BIR is now drafting revised guidelines which will soon require cigarette manufacturers to register with the BIR before setting up their shop in SEZs.
The Finance secretary also agreed with Salceda’s proposal in a House hearing that PEZA needs to strengthen its police force to patrol SEZs for possible illicit activities. The BIR is also reviewing Revenue Regulation 9-2015 after the lawmaker called on the agency to consistently affix stamps on all cigarette packs whether for export or local consumption.
“I sent Secretary Dominguez a long list of recommendations to combat illicit tobacco trade. It appears that all of those recommendations will be adopted in some form. I am proud of the work my Committee has done, and I’m proud of the strong working relationship we have with DOF,” Salceda said.
In a series of March hearings, Salceda’s committee heard from stakeholders and came up with a Chairman’s report that was sent to the House leadership and the Finance Secretary.
Salceda says the recent action by the DOF is another example of the strong relations between his committee and the Department.
“The work of the DOF and the House tax committee from 2019 to now is the most productive partnership between fiscal policymaking and fiscal enforcement in recent history,” Salceda said.
The House tax chair added that his committee is lining up hearings for a host of other topics, including agricultural smuggling.