BIR seizes volumes of untaxed juice, tea drinks in Metro Manila, Cavite
By Jun Ramirez and Jun Ramirez
In a two-day crackdown operation, the Bureau of Internal Revenue (BIR) has confiscated a large amount of untaxed juice and powdered tea drinks from three major grocery stores and their manufacturer in Metro Manila and Cavite.
The BIR's large taxpayers service (LTS), under Assistant Commissioner Jethro M. Sabariaga, said it conducted operations yesterday and uncovered untaxed juice and orange drinks at a shopping mall in Quezon City.
A separate operation the day before led to the seizure of S&R Lemon Tea and S&R Raspberry Tea from a shopping store in Taguig City, following a raid on Vermirich Foods Corporation in Carmona, Cavite, the manufacturer of these products, the BIR added.
BIR Commissioner Romeo D. Lumagui Jr. said that Vermirich had failed to register their business, file returns, and pay taxes since 2018, resulting in a loss of P800 million in excise and value-added taxes for the government.
Lumagui explained that such non-compliance violated several sections of the Tax Code, including Sections 130, 150-B, 254, and 263, which are related to the filing and payment of excise taxes.
The grocery stores, acting as distributors of the sweetened and powdered drinks, were implicated for their alleged failure to exercise due diligence in verifying Vermirich's compliance with tax obligations.
Lumagui stressed that the distributors also violated various provisions of the Tax Code and Revenue Regulations No. 20-2018 since they possessed items subject to excise tax.
Lumagui stated that the BIR would maintain close monitoring of other manufacturers of ready-to-drink products to ensure strict compliance with tax requirements.