FMCG and tax experts share updates at the PRA Q2 GMM

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To update its members on consumer trends and new tax and customs laws, the Philippines Retailers Association conducted its 2nd Quarter General Membership Meeting on July 25, 2019 at the Edsa Shangri-La Hotel.

Kantar Worldpanel New Business Development Director Lourdes Deocareza reported on the top fast-moving consumer goods (FMCG) brands across the globe and in the country, preferred by the consumers and how retailers, especially engaged in FMCG can leverage on this trend.

Deocareza shared that the top global FMCG brands are Coca-cola, Colgate, Maggi, Lifebuoy and Lays. While in the Philippines, the preferred brands are Lucky Me, Nescafe, Surf, Silverswan and Kopiko.

She also explained that brands that have high footprint can help retailers—especially in FMCG niche such as supermarkets and convenience stores to win more shoppers by driving foot traffic.

“Local brands are gaining huge traction across food and non-food. A Filipino shopper visits an average of eight channels to buy FMCG,” she added.

She also said that the hyper and supermarkets are growing along with smaller formats. Convenience stores group has the highest growth at 45%, followed by Direct Sales (27%), and Drugstores (17%).

SGV & Co Principal Atty. Stephanie Nava shared some key global trends in taxation and how the country is faring in comparison with the global key trends.

She added that one trend in global taxation policy is reduced rates and exemptions as instruments of tax policy. Likewise, tax authorities are increasing their compliance efforts on online businesses and intensified audit of entities transacting through online platforms.

In the country, the Bureau of Internal Revenue (BIR) uses electronic filing and payment system (EFPS) and the eBIRForms return preparation software as response to digital revolution.

She also shared that importers, including retailers can avail of the prior disclosure program (PDP) at the Bureau of Customs (BoC).

“This is an option given to importers to voluntarily disclose errors and inefficiencies on time and pay only the deficiency duties and taxes plus 20% interest per year and avoid the 125% penalty imposed by BoC to those found with errors in reports,”she shared.

New members were also inducted during the GMM. The event is sponsored by EPSON Philippines.