Trishia Billones, ABS-CBN News

<figure class="op-social"><iframe allowfullscreen="" frameBorder="0" height="350" src="https://www.youtube.com/embed/6zI2Woa19Ls" width="510"></iframe></figure>Outgoing Bureau of Internal Revenue (BIR) Commissioner Kim Henares has warned that the likely reimposition of the ad valorem tax on fuel products might pave the way for corruption.Speaking on ANC&#x27;s Headstart Monday, Henares said there had been a shift from ad valorem to specific taxation on fuel products because &quot;people were gaming the system.&quot;&quot;What people did before is, let’s say, they’ll sell at the manufacturer and importer at one peso, then they will have a marketing arm where they will sell at the real price. So the government was only able to collect on one peso,&quot; she explained.But mulling a return to the ad valorem system could hinder President-elect Rodrigo Duterte in his mission to cap corruption in all agencies of government.&quot;Isn’t it they want to lower opportunity of corruption and all those things? If you go back to ad valorem, the price can be discussed,&quot; she added.Incoming Finance Secretary Carlos &quot;Sonny&quot; Dominguez said on Friday he is mulling the return to ad valorem tax on fuel products, where taxes are based on the selling price or value of goods or transaction, rather than on volume.READ: <a href="http://news.abs-cbn.com/business/06/03/16/dominguez-mulls-return-to-ad-valorem-tax-on-fuel">Dominguez mulls return to ad valorem tax on fuel</a><div>TAXING JUNK FOOD</div>Henares said junk food needs a stricter definition if it will be taxed &quot;because the definition can be very broad and can be very narrow.&quot;She also pointed out that the imposition of the sin tax on those foods call for more regulations on manufacturing and distribution factories. She added that the incoming administration would also have to decide on the taxation scheme it will use.&quot;Ad valorem has its down side because they can play with the value and it gives the bureau more discretion. Specific, it gives you less discretion but if the prices of the goods are so wide, it’s hard to get a specific rate that’s fair to everyone,&quot; she said.Henares added this may also be in conflict with the incoming administration&#x27;s push for agricultural development because the value chain of the sector would lead to the production of the junk food.&quot;You want to help the agriculture sector. If you look at where does the value chain of the agricultural sector go? It goes to these junk food and all those things,&quot; she said.&quot;So you have to balance all the policies. You may be taxing this, but your agriculture sector might be affected also. Personally, I don’t really, cannot really say yes or no because it really depends on how the structure is, defining what junk food is,&quot; she added.READ: <a href="http://news.abs-cbn.com/business/06/03/16/incoming-finance-chief-dominguez-mulls-tax-on-junk-food">Incoming Finance chief Dominguez mulls tax on junk food</a>

Outgoing Bureau of Internal Revenue (BIR) Commissioner Kim Henares said on Monday, the re-imposition of the ad valorem tax on fuel products opens the possibility of corruption.

Henares: Rethink tax on junk food, ad valorem on fuel

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Henares: Rethink tax on junk food, ad valorem on fuel

Trishia Billones,

ABS-CBN News

Published Jun 06, 2016 05:52 PM PHT

|

Updated Jun 07, 2016 02:05 AM PHT

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