A CONSUMER advocacy group is calling on the government to prevent companies from passing on the costs of import duties on key products to consumers.
In a statement released Thursday, Laban Konsyumer, Inc. (LKI) said the organization had submitted letters to Congress calling for the prevention of the shift of indirect taxes imposed on businesses to consumers.
These taxes include safeguard and anti-dumping duties on imported cement, ceramic tiles, vehicles, rice and meat products.
“We propose that Congress introduce amendments to the process of change and stop the passing of the tax burden on consumers,” LKI said.
Automakers began collecting deposits after the government imposed provisional safeguard duties on imported cars.
“Under existing tax laws and cases, the responsibility for paying indirect taxes rests with one person, the statutory taxpayer,” said LKI President Victorio A. Dimagiba.
“However, the burden of it can be shifted and transferred to another person… (thus) the tax is imposed on the products before they reach the consumers who ultimately pay them as part of the purchase price. . In this case, the consumer pays more for the products. ”
Current tax legislation, LKI said, defeats the purpose of tariffs on imported products if the burden is shifted to consumers.
“We must also prevent windfall profits of the statutory taxpayer in the event of a favorable appeal against the higher tariff, coupled with a refund,” Dimagiba said.
The law should also ensure that prices fall in favor of consumers whenever there is a tariff reduction. – Jenina P. Ibañez