Due to the Covid-19 pandemic that caused “plummeting sales and sustained net losses,” Duty Free Philippines Corporation (DFPC) had not remitted the P174.32 million share of the government from its operations for several years.
In its report, the Commission on Audit (COA) said of the P174.32 million, a total of P52 million is for the Department of Tourism (DOT) while P122 million is for the Tourism Promotion Board.
COA said the amount had remained uncollected as of Dec. 31, 2022 contrary to the Implementing Rules and Regulations (IRR) of Republic Act No. 9593, the Tourism Act of 2009.
In noted that RA 9593 mandates that a variable percentage of DFPC's net profit should be remitted to the office of the Tourism Secretary at the end of every fiscal year in order to fund tourism programs and projects in lieu of its statutory remittance to the national government.
"Inquiry with the accounting division staff and review of accounting records showed that no subsequent remittances were made nor accrual of share from the earnings of DFPC in the years 2020 and 2021 due to the net loss incurred by DFPC on both years," COA said in its report.
But COA recognized the financial difficulties of the DFPC from 2020 to 2022 with less travelers and tourism activities because of the Covid-19 pandemic.
It also pointed out DFPC Board Resolution No. 5-9-24-20 dated Sept. 24, 2020 which has no validity period of the deferment of DFPC's remittance and no alternative schedule of payments nor proposed measures or action plan taken on the remittance of amounts due from DFPC.
Thus, COA, recommended that the DOT should coordinate with the DFPC and take necessary measures to collect its P52 million share "within a reasonable period" and ensure that its shares moving forward is regularly and promptly accrued.
It lamented that had the share been remitted timely, the funds could have been used to implement more programs and projects that could attract more tourists in the country, therefore helping the DFPC increase its sales and obtain more profits.