February 25, 2009
Luzon feed millers accused of evading import taxes
A Philippine solon accused that some feed millers in Luzon have engaged in technical smuggling of imported wheatand soy through undervalued and wrongly declared goods.
Representative Faustino Dy from the 3rd district of Isabela claimed that he has reliable information on feed millers'' illegal activities and that a tightened noose for them will eventually earn the national government more revenues.
Dy said certain feed millers import wheat and declare such as for human consumption instead of animal feeds use which will enable them to pay three percent of import tax instead of seven percent for feed wheat importation.
Dy said the executive department should closely watch some people at the Bureau of Customs and the Bureau of Internal Revenue who are allegedly in collaboration with the importers and traders.
The tax dodging has also its effect on the price of other commodities, according to Dy. Massive wheat importation has affected the buying price of yellow corn in the country as feed millers, who also buy corn, usually dictate the buying price, he said.
Corn farmers have been harvesting an average of 800,000 tonnes of yellow corn in Isabela for several years now.
But feed millers'' importing soy and wheat duty-free can severely impact corn farmers, he stressed.
Dy called for a need in amending the Agriculture and Fisheries Modernization Act (AFMA) when it comes to duty-free importation, because it tends to adversely affect the lives of small farmers while favouring some importers and traders.