Councilor El Cid Familiaran revealed the Sangguniang Panlungsod had approved the resolution he authored addressed to AVM Bernardo, operator of the city’s slaughterhouse, appealing for its immediate cessation of imposing 12 percent Value Added Tax (VAT) to meat vendors availing of their services.
According to Familiaran, since the private firm signed a Memorandum of Agreement (MOA) with the city government, the company is already VAT-registered. The councilor said it is automatic that the rates the company are charging as slaughter fees, which is P2.50 per kilo, are inclusive of the 12 percent VAT. He said that in the light of Section 16 of the MOA signed with the city, any increase in fees and other charges should at least have a clearance from the City Council. Familiaran said the imposition of the 12 percent VAT is tantamount to an increase in the rates imposed by the private slaughterhouse operator. “If you’re VAT-registered, it is automatic ‘cost of goods plus 12 percent VAT’, but if you’re non-VAT, it should be ‘gross sales plus three (3) percent tax,’” he pointed out. The councilor stressed that the reason perhaps that it is only now that AVM Bernardo imposed the 12 percent VAT, is its failure to issue official receipts since the start of their operations. /WDJ By Ranie S. Azue Watchment Daily Journal
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