By Sarwell Meniano/PNA
TACLOBAN CITY — A group of businessmen in Leyte is lobbying for Manila-based firms with operations here to pay their taxes in Eastern Visayas to raise the region’s economic output.
Oliver Cam, Philippine Chamber of Commerce and Industry (PCCI) – Tacloban, Leyte chapter vice president for external affairs, on Tuesday formally asked the Regional Development Council’s economic development committee to make representation with the Department of Finance to correct this practice.
Cam said the finance department can require these corporations to prepare and submit to the Philippine Statistics Authority a copy of their local operation’s financial report.
“Our proposal is for these companies to file a return of their corresponding income and other taxes due at the Bureau of Internal Revenue (BIR) regional office,” Cam said during the meeting.
The business group is calling for the accounting of taxes as giant firms managing malls, hotels, retails, hardware, and other big establishments expanded their operations in cities and major commercial districts in Eastern Visayas.
Among these firms are SM Prime Holdings, Robinsons Land Corp., Gaisano, Puregold Price Club Inc., LKY Properties, Wilcon Depot, Inc., and Citi Hardware.
“It is a standard procedure of these corporations to integrate the result of their local operations into one financial report. While this practice suits well to the administrative convenience of the said corporations, it has important implications in the region,” Cam added.
The system affects the gross regional development product (GRDP) since their economic output is counted at the national level, according to the local PCCI chapter.
“Income and other taxes due from the result of local operations are paid in the region where main offices of these corporations are located; hence, taxes due from local operations are not included in the collection targets of BIR field offices,” he added.
Eastern Visayas’ economy managed to grow by 1.8 percent in 2017, but the growth is significantly slower than a year ago due to the scaling down of post-“Yolanda” construction activities and a decline in farm and fishery output.
The GRDP performance nosedived by 10.2 percent from a positive growth of 12 percent in 2016. The region’s growth is way below than the 6.7 percent at the national level.