BIR plans to collect VAT on toll fees
MANILA, Philippines – After pursuing more taxes from campaign expenditures, small entrepreneurs and inheritance of heirs, the current tax agency head is planning to pursue another target: toll fees.
Joel Tan-Torres, commissioner of the Bureau of Internal Revenue (BIR), told reporters Friday that plans are in place to mpose a 12% value added tax (VAT) on toll fees.
He said the plan to impose VAT on toll fees should have been implemented in 2005 but was deferred several times.
"We are just imposing what is in the law. We will impose it first on those who have the capacity to pay, like those who have Mercedes Benz,” he said.
“Those who can afford a car needs to pay the VAT on toll fees. They can afford to pay tax on water, electricity and oil. Why not the toll fees?”
The BIR expects to collect P2.5 billion from VAT on toll fees during its first year of implementation.
No date yet has been set to implement the plan.
Private cars first
The plan is to implement the tax on private vehicles first.
Tan-Torres said the BIR is still studying the need to expand the coverage to include public transport.
The BIR is under pressure to raise collections this year to cope with the government’s projected P300 billion budget deficit.
Not feasible?
The Toll Regulatory Board’s spokesperson Julius Corpus, however, said it would be difficult for toll operators to distinguish between private and public vehicles.
"The current toll collection systems and equipment are not capable of identifying what is public and private. Physical and manual identification will cause longer lines at the toll plazas that will greatly inconvenience motorists,” Corpus told reporters.
“The plan needs thorough study if it is possible to impose VAT initially on private vehicles only," he stressed.
Double tax?
He clarified that the toll fee tax is not a form of double taxation.
“The toll fee that road users pay goes to the private company that operates the expressway. The toll fee does not go to the government,” he explained. - Report from ABS-CBN News Channel
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This government is focusing
This government is focusing how to make money by taxing
the hell out of the filipino people instead of focusing
creating jobs and investing it on something that will create
revenue for the government.
This show how this government is a joke. They want revenue,
the find a way to tax you. Instead of doing that, why not
do something that will create revenue. Kawawa namn small
business and middle/low income filipinos that will suffer
on this.
Please pick the right candidate that will stop this way of govnt.
Pick a candidate the supports smaller government, smaller tax
and government that will focus on job creation.