THE Bureau of Internal Revenue (BIR) seized over 390,000 bottles of perfume and eau de toilette valued at P604.3 million in foregone excise tax.
In a statement on Monday, the BIR said it inspected over 400 factories, warehouses and stores from Sept. 27 to 28.
“Big or small, every business has to comply with excise tax regulations,” BIR Commissioner Romeo D. Lumagui, Jr. said.
According to the BIR, manufacturers, producers, or brand owners availing of the services of a toll manufacturer, subcontractor, or import-dealer of perfume and eau de toilette must file an application in writing for a permit to engage in such business with the BIR Commissioner through a duly authorized representative.
The persons or entities engaged in such business must also secure permits from the Excise Taxpayers Regulatory Division. They must also secure a permit to operate for excise tax purposes.
“The manufacturer, importer, owner, or person having possession of the excisable articles can be made liable for lack of permit to operate, failure to file certain information returns, and/or unlawful possession or removal of articles subject to excise tax without payment of the tax under the National Internal Revenue Code, as amended,” it added.
In August, the BIR said that it was losing as much as P370 billion in revenue due to “ghost receipts.”
The BIR expects to collect P2.64 trillion this year, of which P336 billion will come from excise taxes.
It collects about 70% of government revenue. — Luisa Maria Jacinta C. Jocson