EDITORIAL | Need to learn the lesson

THEY must have learned the lesson by now.

The Bureau of Internal Revenue in the Davao Region padlocked a business establishment Tuesday as part of its “Oplan Kandado,” a program aimed at punishing those businesses that have been trying to employ tactics just so they could evade paying the correct taxes.

Although it was able to reopen the afternoon after its closure, the business establishment had to cough up 110% of the basic tax it owed the government, aside from other obligations that it has yet to settle so that it can prevent another closure in the future.

But what is more problematic for the establishment is it has gotten the brand of being among those misdeclaring their incomes so that they could not pay the correct taxes. These establishments may argue that they are following the law, but the action of the agency leaves a very bad impression especially because they are packaging themselves as providers of good products and services.

Of course, the action of the agency may not be the last as there are obviously others that have been doing this malpractice, some of them running their businesses even for decades.

It is good that the primary business group in the city, the Davao City Chamber of Commerce and Industry, has promised to make payment of correct taxes among its campaign initiatives.

In his speech during the oath-taking event of the new chamber officials, Arturo M. Milan, its new president, said that the business group will encourage its members to pay the correct taxes.

“We have to encourage for the payment of correct taxes to government while helping government enhance the ease of doing business, patronize local products and businesses, improve basic infrastructure such as roads and bridges, airports and seaports — all doing this while ensuring the protection of the environment,” Milan said in his speech.

It would be better for businesses to make sure that they pay the correct obligations to the government because they must remember that they are helping make sure the government is able to provide better social services to its constituents.

A better condition for the people will always result in better productivity and good economy, a cycle that also allows businesses to thrive. Cheating the government may do a little good on the businesses immediately, but the long-term impact may even result in their death.


Posted in Opinion