BOC questioned for taxing supposedly exempted championship belt

By , on August 28, 2015


Filipina boxer Jujeath Nagaowa's WIBA world title belt, which was was given an estimated value of P20,147.77 and entailed a P3,027.13 customs duty and a P2,782 value added tax.  (Photo from Nagaowa's Facebook account)
Filipina boxer Jujeath Nagaowa’s WIBA world title belt, which was was given an estimated value of P20,147.77 and entailed a P3,027.13 customs duty and a P2,782 value added tax.
(Photo from Nagaowa’s Facebook account)

MANILA – Filipina flyweight champion Jujeath Nagaowa questioned the Bureau of Custom’s (BOC) imposed tax on her Women’s International Boxing Association (WIBA) world title belt when it should have been exempted from taxes according to the law.

The championship belt, which Nagaowa won earlier this year from her boxing match against China’s Luo Yu Jie at the Forum de Macau, was given an estimated value of P20,147.77. The belt then entailed a customs duty worth P3,027.13 and a value added tax amounting to P2,782.

Aside from citing the law which exempted medals, awards and other similar recognition from taxes, the 27 year-old boxer also did not know how the BOC came up with its estimated value.

“It hurts that after battling full 10 rounds of boxing for this belt and after some days of agony waiting for its arrival in my place, [there’s] so much disappointed ‘cause this big thing of mine is also waiting for me for a trade before claiming it,” Nagaowa said.

“I do not know how [the BOC] came up with that price. But as far as I know, [the belt] should have been exempted from tax because it is a prize,” she added.

Nagaowa was referring to Section 105 (h) of the Tariff and Customs Code of the Philippines which stated that, ‘medals, badges, cups and other small articles bestowed as trophies or prizes, or those received or accepted as honorary distinction [are] exempt from the payment of import duties.’

The Filipina boxer could have insisted on her championship belt’s tax exemption but seeing that it would cost her a long process and too much time, she decided to pay the taxes and duties instead.

Customs Commissioner Alberto Lina, for his part, explained that ‘normally, awards have monetary value so they will be charged [duties and taxes]. But that can be reimbursed [once they get] an exemption from the Department of Finance.’