DTI tackles business concerns on BIR regulation 

Trade Undersecretary and Board of Investments managing head Ceferino Rodolfo
Trade Undersecretary and Board of Investments managing head Ceferino Rodolfo

Amid calls from several business groups to repeal Revenue Regulation (RR) 9-2021 issued by the Bureau of Internal Revenue (BIR), Department of Trade and Industry (DTI) Undersecretary Ceferino Rodolfo said the government is giving high priority to discuss the issue, according to a report by Philippine News Agency.

In a webinar Friday, Rodolfo said the DTI, Department of Finance, National Economic and Development Authority (NEDA), and groups of exporters are meeting this day to resolve issues with respect to the RR 9-2021.

BIR’s new policy will impose 12 percent value-added tax (VAT) on goods and services, even sourced locally, sold to export-oriented firms. These purchases were previously subjected to zero VAT.

“We continue to engage everyone including, most especially our exporter groups because they’ve raised an important issue with respect to collection of VAT for indirect exports,” Rodolfo said.

He admitted that the new policy has created uncertainty in the country’s business environment.

Rodolfo, who is also the managing head of the Board of Investments (BOI), said the concerns raised by the private sector is “very important” as the government has been working on localization of the manufacturing industry.

One program of the DTI, the Comprehensive Automotive Resurgence Strategy (CARS) Program, requires participating carmakers to localize their production by at least 50 percent.

“We have achieved so much over the past so many years in terms of being able to widen the supplier base,” the trade official said.

But Rodolfo assured the private sector that the issue will be resolved. 

He also called for “a little patience” among companies that will be affected by the new regulation.

“(T)he good thing is, the government, as always, we listen to people,” Rodolfo said. “It’s been given a high priority.”

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