Ex-NTA Official Blamed for Losses of Tobacco Farmers

Source from:  By FREDDIE G. LAZARO NARVACAN, Ilocos Sur 06/08/2004

A large federation of tobacco farmers blamed yesterday a former administrator of the National Tobacco Administration (NTA) for the financial damage they have suffered in this year's trading season. Carlos Cachola, president of the Philippine Association of Tobacco-Based Cooperatives (PATCO), traced their trading woes which allegedly began in l999 to an alleged ruling of a former NTA administrator "which opened the door to increased importation of tobacco leaves and tobacco products by the big tobacco companies." Cachola said that the former administrator sent on April 23, l998 to the customs commissioner a letter declaring that tobacco companies can import blending tobacco and tobacco products without being required to submit a certificate of authority to import. The tobacco-importing companies were previously required to apply for and secure the certificate from the NTA, Cachola recalled. He said that the move of the former administrator shielded the tobacco companies from shelling out multi-million pesos in taxes to the government for their importation. The certificate of authority to import that listed down the volume of importation was used by the Bureau of Internal Revenue as basis for computing the tax liability of the importer with a tax rate of R5 per kilo, it was learned. He said that the tax rate, which comes under the "title inspection and monitoring fee," is provided for under Executive Order No. l09 issued by then President Aquino. "With the certificate waived, the BIR has not been in the business of collecting monitoring and inspection fee from the tobacco importers," he said. Enditem