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BIR files ₱262-M tax evasion case over alleged misuse of VAT exemption in palm oil imports
BIR files ₱262-M tax evasion case over alleged misuse of VAT exemption in palm oil imports
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BIR files ₱262-M tax evasion case over alleged misuse of VAT exemption in palm oil imports
by Elijah Gaven Mitra07 May 2026
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The Bureau of Internal Revenue (BIR) has filed tax evasion charges against Lobelle Commodities Corporation and several of its officers over the alleged improper use of value-added tax (VAT) exemptions in the importation of palm olein oil.

According to the BIR, the company allegedly failed to pay more than ₱262 million in taxes from its 2020 import transactions.

Investigators found that the firm did not qualify for VAT exemption, as it was not engaged in the production of animal feeds—a requirement under the law for imported palm olein oil to be exempted from VAT.

The BIR also noted that there was no record from the Food and Drug Administration (FDA) indicating that the company sought certification confirming that the imported oil was not suitable for human consumption, which is another regulatory requirement.

BIR Commissioner Charlito Martin R. Mendoza warned against the abuse of tax exemptions, stressing that such practices deprive the government of revenue and unfairly burden compliant taxpayers.

In a separate development, the BIR also filed cases against two businessmen for alleged non-payment of over ₱8 million in taxes.

The agency said these actions are part of its ongoing enforcement campaign under the Run After Tax Evaders (RATE) program, which targets individuals and corporations violating tax laws.

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