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AN
OPPOSITION congressman said Wednesday that Malacañang
had itself to blame for the dismal revenue collection
during the first quarter of the year, which saw the
government missing its target revenue collection by at
least 7 percent.
Liberal
Party Rep. Lorenzo Tañada III of Quezon said the
Department of Finance’s judgment call not to give
priority to the long-pending anti-smuggling bill may
have worsened the government’s collection woes.
Tañada
said the measure could have plugged one of the biggest
loopholes in the tax system had it been given priority
by the Palace and enacted by Congress.
He said
the measure could have provided the saving grace for the
government’s dismal fiscal performance from January to
March this year.
“Estimated government losses from smuggling amount to
P150 billion a year. Had this bill, which has been
sitting with the Senate’s Committee on Ways and Means
since June 2005, been acted upon, then perhaps our
fiscal situation might not be as bad as it looks today,”
Tañada said in a statement.
The
proposal is contained in House Bill 4069, which largely
originated form Tañada’s House Bill 3715.
The
antismuggling bill seeks to tighten the importation
rules to make technical smuggling harder, thereby making
the importers pay the proper import duties. It
likewise seeks to protect industries that are rapidly
losing the local market from the entry of cheap smuggled
goods like the shoe, tile and other industries.
The
proposal establishes preventive measures to curb
smuggling by providing clearer and more transparent
rules for importation, reduces the discretion of Customs
officials and strengthens the role of the private
sector. Further penalties for those caught smuggling
are increased.
Tañada
said the measure was placed on the back burner by the
Senate Ways and Means Committee, which instead
prioritized the Rationalization of Fiscal Incentives
Bill. The latter, however, remains pending with the
panel because of conflicting lobbies from both foreign
and local big businesses as well as locators in
processing zones.
He noted
that even the finance department appeared not to know
exactly what it wanted from the bill. In the end, the
locators showed more lobby strength with the perks in
free ports and export processing zones they reclaimed
with recent related bills passed into law.
Tañada
said the proposed anti-smuggling law could have provided
the government the tool to curb technical smuggling and
achieve its revenue goals. He said the measure could
have also provided a viable alternative to the expanded
value added tax (EVAT), which hits hard on all sectors,
particularly the poor. |