MARKET DEVELOPMENT
Impunity Protects Smuggling
Impunity Protects Smuggling
28/05/2013 (Malaya) - Up to 30 percent of large import commodities now in the market—from rice to oil, light bulbs to such agriculture products as vegetables and palm oil to cars—are smuggled, according to the European Chamber of Commerce of the Philippines (ECCP).
Henry Schumacher, vice president of external affairs of ECCP, said in a statement yesterday that oil smuggling alone costs the government P6 billion in uncollected taxes and customs duties.
The group also estimates that 30 percent of light bulbs in the market are smuggled.
Schumacher said smuggling has been happening initially in free ports but the illegal practice has since expanded to other places.
ECCP lamented that rampant smuggling in the country has “for many years been left unchecked, with no serious sustained effort to apprehend and prosecute the perpetrators of this most serious form of economic sabotage.”
This is one of the major reasons, ECCP said, why the country has not been able to attract investment in manufacturing that should create jobs. Legitimate local manufacturers cannot compete with smugglers who do not pay the required taxes, it said.
“Manufacturing, one of the stepping stones for inclusive growth, will not expand if many more can be made from smuggling,” Schumacher said in the statement.
The business group also shared the disappointment of the Departments of Finance and Department of Justice with the court TRO ruling in favor of oil firms that are being investigated for smuggling.
Schumacher said the smugglers are creative and are in many cases protected, noting the crucial role of the Bureau of Customs (BOC) not only in apprehending smugglers and in seizing illegal shipments.
“Once BOC gets evidence it is essential that the court administration helps to catch the fish; if not, the culture of impunity will continue,” he said.
ECCP has called on the government Executive Branch to apprehend and prosecute smugglers and their protectors in government.
In addition to plugging loopholes in tax administration, the group also urged BOC and Bureau of Internal Revenue to simplify and streamline payment of duties and taxes to reduce the incentive for bribery and smuggling.
One way of doing this is to use the VAT system to the fullest to detect and apprehend smugglers.
ECCP also called on Congress to pass the anti-smuggling law and significantly increase the punishment for the crime of smuggling.
“We call on the Supreme Court to reform the judiciary. Appoint more judges, increase their pay and benefits, discipline erring and corrupt judges,” ECCP said.
In the past ECCP has made recommendations within the scope of the Customs Modernization Act which will is expected to be filed in the 16th Congress that convenes in July.
Henry Schumacher, vice president of external affairs of ECCP, said in a statement yesterday that oil smuggling alone costs the government P6 billion in uncollected taxes and customs duties.
The group also estimates that 30 percent of light bulbs in the market are smuggled.
Schumacher said smuggling has been happening initially in free ports but the illegal practice has since expanded to other places.
ECCP lamented that rampant smuggling in the country has “for many years been left unchecked, with no serious sustained effort to apprehend and prosecute the perpetrators of this most serious form of economic sabotage.”
This is one of the major reasons, ECCP said, why the country has not been able to attract investment in manufacturing that should create jobs. Legitimate local manufacturers cannot compete with smugglers who do not pay the required taxes, it said.
“Manufacturing, one of the stepping stones for inclusive growth, will not expand if many more can be made from smuggling,” Schumacher said in the statement.
The business group also shared the disappointment of the Departments of Finance and Department of Justice with the court TRO ruling in favor of oil firms that are being investigated for smuggling.
Schumacher said the smugglers are creative and are in many cases protected, noting the crucial role of the Bureau of Customs (BOC) not only in apprehending smugglers and in seizing illegal shipments.
“Once BOC gets evidence it is essential that the court administration helps to catch the fish; if not, the culture of impunity will continue,” he said.
ECCP has called on the government Executive Branch to apprehend and prosecute smugglers and their protectors in government.
In addition to plugging loopholes in tax administration, the group also urged BOC and Bureau of Internal Revenue to simplify and streamline payment of duties and taxes to reduce the incentive for bribery and smuggling.
One way of doing this is to use the VAT system to the fullest to detect and apprehend smugglers.
ECCP also called on Congress to pass the anti-smuggling law and significantly increase the punishment for the crime of smuggling.
“We call on the Supreme Court to reform the judiciary. Appoint more judges, increase their pay and benefits, discipline erring and corrupt judges,” ECCP said.
In the past ECCP has made recommendations within the scope of the Customs Modernization Act which will is expected to be filed in the 16th Congress that convenes in July.