BIR to penalize importers misdeclaring meat as animal feeds to escape VAT

Published September 15, 2021, 12:43 PM

by Jun Ramirez

The Bureau of Internal Revenue (BIR) warned on Wednesday, Sept. 15, that it will penalize importers and distributors of livestock and poultry products if they would misdeclare them just to escape value-added tax (VAT) payment.

BIR Commissioner Caesar R. Dulay issued the warning after signing Revenue Memorandum Circular 100-2021 transferring the permit for the importation of the items from the Food and Drugs Adminstration (FDA) to the Bureau Animal Industry.

The FDA relinquished it’s authority over the issue acknowledging that it has no legal mandate to impose sanctions against dishonest importers and sellers.

BIR insiders said many of meat importers classify the products including palm oil and other ingredients for used in the manufacture of animal feeds to avoid the VAT.

Importation of livestock and poultry products for human consumption are subject to 12 percent VAT.