Federation of Philippine Industries (FPI) Chairman Jess Arranza on Wednesday, Oct. 11, confirmed the rampant smuggling of cooking oil in the country.
In exclusive interview during DZRH's Dos Por Dos, Arranza explained smugglers' schemes in the local cooking oil industry.
"Mayroon tayong batas na kapag inangkat mo ang sangkap na pwedeng ihalo sa animal feeds for compounding, 'yan ay libre sa lahat ng buwis pati value added tax. Ang palm oil ay matigas agad 'yan, ginagawang palm olive para mag-feed sa tao. Kaya yun ang pinapasok pero hindi naman talaga ginagamit sa feeds," he said.
Jess Arranza, Chairman, Federation of Philippine Industries, sa cooking oil smuggling: Nakakalungkot aminin, pero totoo. #DosPorDos#SamaSamaTayoPilipino
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According to Arranza, smugglers use palm oil for business purposes, which may exclude them from any taxes.
He said that some use palm oil to mix in biodiesel, a renewable, biodegradable fuel manufactured domestically from vegetable oils, animal fats, or recycled restaurant grease.
Aside from these, the FPI Chairman said that the law mandates the public to utilize coconut instead for the livelihood of coconut farmers.
"Ang batas naman, ang pinag-uusapan, kailangan coconut ang ihalo para mabigyan ng hanapbuhay ang ating "cocoteros," pero ang nangyayari, ginagamitan pa rin ng palm olives," he said.
Palm oil, according to Arranza, could not just be used in cooking because it hardens easily, but businesses undergo "fractionation."
"Napakaliit na porsyento ang ginagamit sa paghalo sa feeds. Ang palm oil, hindi basta nagagamit sa pagluluto dahil madaling tumigas. Ang ginagawa sa atin, dinadaan sa fractionation," he said.
Arranza said he would report the scheme to the National Bureau of Investigation (NBI), adding that he already referred the matter to Bureau of Internal Revenue (BIR) due to possible tax liability.
Meanwhile, the FPI Chairman said the Congress' first hearing revealed that about P45 billion were missing from the Value Added Tax (VAT).
"Pwera pa ang ininanakaw na benta ng lehitimong mga coconut oil sa bansa na nagbabayad," Arranza said.
"Estimate namin, sa loob ng 15 na taon, nasa mga P60-P80 billion. Ang napasok na sa atin, mga nasa P1 million metric tons," he added.
