Shell may import fuel but it must pay taxes — DOF

Imports of Pilipinas Shell Petroleum Corp. will not be seized given a standing restricting order issued by a Batangas court, but taxes on the shipments must be paid, a Cabinet official said. Finance Secretary Margarito B. Teves told reporters on Monday night oil firm could proceed with its imports after it secured a 20-day temporary restraining order from the court. "They can continue to import but they have to pay the duties," he added. The Bureau of Customs wants to seize Pilipinas Shell’s fuel imports as payment for P7.3 billion in alleged back taxes. Customs Commissioner Napoleon L. Morales on Tuesday said Pilipinas Shell’s imports would be subject to a 3-percent duty, 12-percent value-added tax, and excise tax equivalent to P4.35 per liter. As the bureau prepares to appeal the court order, "we will not be holding the imports," he added. Teves said the government was still looking at collecting the P7.3 billion. The government, he added, was in discussions with the oil firm for a compromise. Teves noted that prior to the release of a Court of Tax Appeals (CTA) decision denying the oil firm’s petition for a permanent injunction, the government had suggested that an escrow account be opened by Pilipinas Shell. "They wanted to have a surety bond but the surety bond was ruled out by the CTA," he said, adding that the escrow account option was still available. It would work in both parties’ favor, said Teves, since a final ruling on the tax dispute would allow the winner to secure the funds immediately. Roberto S. Kanapi, Pilipinas Shell, vice-president for communications, said in a telephone interview, they had not decided yet. The company would also comply with tax payments for new imports, he added. BusinessWorld