Press Release
March 19, 2018

UNCOLLECTED DUTIES AND VAT FROM VARIANCE IN CHINA IMPORTS ALONE COULD HAVE SOLVED SOME OF RP'S PROBLEMS - GORDON

Senator Richard J. Gordon said it is time to pull the plug on smuggling in the country to ensure that the government would have funds for development projects and to provide for the country's needs, among others.

Gordon noted that the government lost more than P423-billion from 2012 to 2016 in uncollected duties and VAT because of the variance in the total importation from China, with the variance arising from technical smuggling by misdeclaration or undervaluation.

"Ang China napakalaki ng variance. Ang China, mahirap lokohin ng mga exporter doon kasi ang China nagbibigay ng rebate sa mga exporter na tama ang mga ine-export. Kung ako ang exporter, magbabayad ako ng tama para makakuha ako ng rebate. Kaya yung papel na dumating dito, totoo yun. Dahil ang ginamit ay mga consignee na nagmi-misdeclare or nagu-undervalue. Ibinibilad sila para pag nahuli sila lang. Hindi malalaman yung tunay na tao na nag-iimport," he said.

China has been the country's top export partner and based on China's data on reported exports to the Philippines, the total exportation amounted to the $29,836.57 in 2016 but based on Philippine reported imports, total importation from China only amounted to $15916.07 or a discrepancy of $13029.50.

Gordon, who chairs the Senate Accountability of Public Officers & Investigations or Blue Ribbon, pointed out that total collection from the variance in Chinese importation alone could have solved some of the country's problems such as the shortage in classrooms, strengthening the military's capability and others.

"P423 billion can wipe out the classroom shortage in the Philippines, we have a shortage of 113,995 classrooms nationwide. It can also be used to strengthen our defense capabilities through the procurement of at least 23 Frigates at P18 billion each or 81 F-35A Fighter Jets at P5.2 billion each. P423 billion can be used for the government's Build, Build, Build Program or other development projects," he said.

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