Shell sole energy firm among top taxpayers cited by BOC
Apr 05, 2021
Pilipinas Shell Petroleum Corporation was recently recognized by the Bureau of Customs (BOC) as one of the top taxpayers of the Manila International Container Port (MICP), the only energy company to receive such an honor for 2020.
Shell’s prompt payment of taxes covering its importation of motor oils, industrial grease, and other bulk products that came through the MICP last year helped the government agency exceed collection targets, says BOC Acting Chief of the Informal Entry Division Bienvenido V. Entico, Jr.
“The informal entry division surpassed our collection target last December 2020 by about 5%, collecting more than 130% for the year 2020. Likewise, we have surpassed January 2020’s collection by about 57%, collecting PHP 124 million for January 2021. With your contribution, we will continue to collect more revenues for the government,” he adds.
The contributions of consistent top taxpayers like Shell are even more laudable given that “2020 was full of challenges sparked by the COVID-19 outbreak, which has plagued the country and commerce,” says BOC District Collector Romeo Allan R. Rosales.
Shell continues to deal with the adverse effects of restrictions imposed by governments worldwide to limit movement and stem the transmission of COVID-19, like the crash in demand for fuels, resulting to an oversupply of stocks.
“Integrity is all about being consistent, even in a crisis. We know that whatever we pay to the government will support efforts to help the country bounce back from this economic downturn,” says Shell Lubricant Supply Chain Manager Jonas Sarmiento.
He says the citation manifests Shell’s commitment to partner with the country in nation-building as well as the kind of compliance standards that the company adheres to. “This kind of recognition shows that Shell is walking the talk, and that we’re doing what’s right.”
Aside from paying the correct import taxes promptly, Shell is a major contributor to the duties and taxes collected under the BOC’s Fuel Marking program. Oil companies are required under the fuel marking program to pay a very minimal amount of P0.06884 (VAT-inclusive) per liter of fuel marked under this program designed to combat oil smuggling.
The government has so far collected P192.7 billion in duties and taxes on 19.90 billion liters of marked fuel products from September 4, 2019 to February 17, 2021, according to the Department of Finance (DoF).
Since the first marking on September 4, 2019, Pilipinas Shell has had 3.49 billion liters of its fuel products marked. The company also plans to continue participating in the implementation of the BOC’s Field Testing phase of the Fuel Marking program in 2021 which will test the diesel, gasoline, and kerosene found in retail stations, tank trucks, vessels, depots, and warehouses for compliance.
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