Monday, April 3, 2017
MANILA – Negros Oriental representative Arnulfo Teves yesterday urged the House of Representatives to conduct probe into the tax obligations of cosmetics and beauty companies.
“There is considerable disparity between the actual tax being collected from the companies and the taxes they should be paying based on their revenues,” Teves said in a statement.
Teves added that he has obtained documents showing that the cosmetic and beauty companies’ tax payments do not match with their huge sales.
“There is also great divergence in the profits of similarly situated companies in the cosmetics and beauty products industry, Teves said. “Many companies could be understating their revenues or sales to avoid paying higher taxes.”
“The understatement of gross revenues shows possible overstatement of cost of goods sold, understatement of profits and underpayment of taxes. The tax underpayment is to the detriment of government and people,” Teves stressed.
Teves said he wants to show the concerned companies the documents in his possession when the inquiry begins. The projected probe will complement the tax reform program being pushed by the Department of Finance (DOF).
The DOF has proposed tax reform which includes the imposition of a P6 tax on diesel, cooking gas, kerosene, and bunker oil for electricity generation, and an increase in the levies on gasoline and other petroleum products./PN