The National Association of Young Entrepreneurs believes there should be no favoritism or privileges in the application of the 1.5% tax on gross sales. Jochi Vicente, president of the organization, says the tax is distorted and not well thought out. He said it is unfair in the case of all companies that are losing money. The electricity companies allege they are losing money and cannot pay the tax and have met with the tax department to find a solution. Vicente said that any agreements made with the electricity companies to reduce their payments should apply to all other sectors. He says changes in the application of the law otherwise would be illegal unless passed by Congress. Vicente also said that the agreement of the Customs Department to benefit vehicle importers with a higher ceiling for exemption of the Selective Tax on Consumption (ISC) is also irregular, as a modification of tax reform can only be acted on by Congress. Recently Customs increased the ceiling to US$15,000 after car imports dropped drastically following the application of the new taxes and GATT valuation system.
