(GMA News) The House committee on ways and means will continue exerting pressure to implementing agencies to ensure strict enforcement of excise taxes expected to curb smuggling and tax evasion, its chairman Albay Rep. Joey Salceda said Monday.

Salceda made the remarks after the committee’s approval of the House Resolution 227 which directs the panel to determine the issues in implementing excise tax on sweetened drinks and assess accomplishment of the legislative intent on earmarking of funds to sugar farmers.

“Because this is no time to raise new consumption taxes, we should catch those who escape current taxes so that we can fund our COVID-19 response,” Salceda said in a press statement.

He added that he is also pushing for strengthening tax enforcement as well as passing new taxes.

The committee is also calling for the stronger enforcement of excise taxes on sweetened beverages, which took effect on January 1, 2018 under Tax Reform for Acceleration and Inclusion (TRAIN) Law, Salceda said.

Citing its probe on the matter, the House panel discovered a significant deficit in target tax revenues due to industry shift from the use of high-fructose corn syrup (HFCS).

However, the committee said the deficit cannot be blamed solely on the industry shift because of other factors such as administration and implementation of taxes.

The House inquiry also found that tax revenues to fund programs of sugarcane farmers under the Sugarcane Industry Development Act (SIDA) was not properly enforced as there is low absorptive capacity or capacity to use public funds of the Sugar Regulatory Administration (SRA).

The House committee also recommended the following to enhance revenue collection and administration:

1. Agency audits of the implementation of the sweetened beverage excise tax;

2. Validation of Bureau of Internal Revenue (BIR) beverage product registration and exemption;

3. The creation of a database of accurate import statistics of HFCS;

4. Improvement of Food and Drug Administration (FDA) product testing and implement FDA post-marketing surveillance;

5. Amendment of the FDA mandate to include the evaluation of products;

6. Improvements in the absorptive capacity of the SRA to deliver programs to develop the sugar industry; and

7. The submission by concerned agencies (FDA, SRA, Department of Finance and Bureau of Customs) of periodic status reports to the Committee for proper monitoring of deliverables.