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THE
government has been losing an average of P142.03 billion
in taxes and duties annually since 2002 due to
smuggling, or more than double the P65 billion the
Department of Finance (DOF) reported earlier, if figures
on the country’s importation receipts culled by the
International Monetary Fund (IMF) are to be made as
basis.
The IMF,
in its country report on the Philippines, said the
country had total importation of $284.7 billion from
2002 to 2007.
On the
other hand, the Bureau of Customs (BOC) only recorded a
total of $195.01 billion for the period, or a
discrepancy of $89.69 billion.
The
Federation of Philippine Industries (FPI) said if the
records of the IMF—which derived its information from
reports on the value of goods exported to the
Philippines by the country’s trading partners—are to be
made as basis, the country is losing $14.95 billion
annually.
FPI said
this amount, if computed at an exchange rate of P50 to
the dollar, translates into P747.5 billion in unreported
value of goods that were sold to the Philippines by
other countries.
“Assuming that 12 percent of value-added tax is to be
paid, this means P89.70 billion; and with an average
duty of 7 percent, it will give us P52.33 billion—or a
total revenue loss of P142.03 billion,” the FPI said.
Recognizing this huge unreported importation, Sen. Juan
Ponce Enrile filed a resolution seeking an investigation
last June 11.
The
resolution directs the Senate Committees on Ways and
Means and Finance to conduct an investigation, in aid of
legislation, into the reported disparity in traded
goods, as reported by the Philippine Trade Statistics
and the IMF.
It also
seeks to go deep into the reported rampant and unabated
smuggling of agricultural products, drugs, steel
products, ceramic tiles and other commodities, “with the
end view of coming up with remedial measures to improve
Customs administration and strengthen the fiscal
position of the government by addressing these reported
problems.”
Enrile
noted in his resolution that the DOF reported during the
deliberations for the 2008 general appropriations that
the government is losing P60 billion to P65 billion in
forgone revenues annually due to technical smuggling.
“This
trade disparity shows that smuggling is indeed rampant
and preys on the revenues that could otherwise be spent
by the government to finance infrastructure,
agriculture, health, education and other social needs of
the country,” Enrile said.
With the
economic difficulties the country is facing, there is a
need for the government to strengthen its customs
administration capabilities, efforts to curb smuggling
and stop the unscrupulous activities of certain
businessmen and government officials, and fortify its
partnership with the private sector to protect the
interest of the local industries. |
