12 PRA NEWS UPDATES
PHILIPPINE RETAILING
PRA MEMBERS NAMED APO GRANTEES
The Asian Productivity Organization ( APO ) Secretariat , in cooperation with the China Productivity Center ( CPC ) held a Multi-Country Observational Study Mission on Service Quality and Productivity for the Retail Industry last October 27-29 , 2021 thru a virtual session .
The study mission targets participants from SMEs and Start Ups in the region working to improve productivity in the retail sector .
Through the nomination of PRA and a careful selection process of the Development Academy of the Philippines ( DAP ), the country ’ s National Productivity Organization ( NPO ) to the APO , PRA members Shirley H . Ng of Expressions Stationery Shop , Ma . Erwina R . Bautista of Blooming Ventures , Inc ., and Sam Gregory T . Lim of BLIMS Lifestyle Group , Inc ., were named as APO Grantees for the said study mission . As APO grantees , they share their insights , learning , and experiences related to productivity improvement programs , projects , and initiatives with the DAP-APO Secretariat , and through the APO Grantees Forum .
The APO is an intergovernmental organization established in 1961 to increase productivity in the Asia-Pacific region through mutual cooperation . The APO contributes to the sustainable socioeconomic development of the region through policy advisory services , acting as a think tank , and undertaking smart initiatives in the industry , agriculture , service and public sectors .
The APO is shaping the future of the region by assisting member economies in formulating national strategies for enhanced productivity and through a range of institutional capacity-building efforts , including research and centers of excellence in member countries . It is nonpolitical , nonprofit , and nondiscriminatory .
Retailers support VAT on digital transactions
Photo from : Business World
Philippine Retailers are calling for the immediate approval of a bill that would impose a 12 % value-added tax ( VAT ) on digital transactions in the country as the industry sees increasing competition from foreign e-commerce companies that are not subject to local taxes .
The Philippine Retailers Association ( PRA ) said the lack of taxes on foreign e-commerce firms has created an unfair playing field for retailers and distributors registered in the Philippines .
“ While we pay VAT and customs duties , foreign sellers on digital platforms are able to get their products or services to the customers on a door-to-door basis without tax and Customs laws ,” PRA Vice-Chairman Roberto S . Claudio said .
The industry group ’ s objections are directed at foreign online sellers that are able to deliver goods to the Philippines without being registered in or having business operations in the country and do not pay proper Customs duties and VAT . Such foreign online retailers , he said , are able to sell to the local market without bringing in foreign investment or local employment .
Mr . Claudio is calling on the Department of Finance to validate the sales revenue of
Source : PhilStar online foreign transactions .
“ The retail industry will eventually lose revenue for the uneven playing field , competing with foreign online suppliers who do not pay ( duties according to ) our Customs laws . Eventually , government tax revenues from ( local ) retailers will be reduced over time ,” he said .
The House of Representatives approved House Bill No . 7425 , which amends sections of the National Internal Revenue Code of 1997 , on third and final reading .
Gabriela Party-list Rep . Arlene D . Brosas voted against the approval of the measure , saying it is a tax burden on ordinary Filipinos who are struggling amid the prolonged pandemic .
In supporting the tax measure , PRA ’ s Mr . Claudio also recommended that “ strong ” implementing rules and regulations would be drafted to make sure that all digital transactions have receipts . He cited issues surrounding counterfeit products , false advertising , and product warranties have continued to persist .
“ The bill can be further refined and this can be addressed in the ( Implementing ) Rules and Regulations as to who can be exempted . How it will be monitored and how compliance can be achieved , as well as penalties to be imposed ,” he said .
Source : Business World