BIR acts to boost tax collection

The Bureau of Internal Revenue (BIR) will integrate two of its largest generating services, Large Taxpayer Service (LTS) and the Excise Tax Service (ETS), for a more effective and much improved revenue collection.

The streamlining of the BIR was approved by President Estrada over the weekend, through Executive Order No. 306 to improve administrative control over certain categories of taxpayers and enhance effectiveness of its computerized integrated tax system.

Finance Secretary Jose Pardo said the restructuring of the BIR is geared at increasing revenue collection "which is needed to finance vital economic developmental programs of the government and to attain fiscal stability amid the current economic crisis."

As of end-October 2000, the BIR’s 630 identified large taxpayers contributed some P100.8-billion worth of revenues. By end of 2001, the bureau expects to reach its target of 1,200-large taxpayers mark.

Large taxpayers are those who pay any of the following: value-added tax (VAT) payment of at lease P100,000 for any quarter of the previous taxable year; and excise tax, corporate income and withholding tax payment of at least P1 million.

Internal Revenue Commissioner Dakila Fonacier, for his part, expressed optimism that this move will enable the BIR to improve its collection which is expected to reach P398.7 billion this year.

Under the new directive, the LTS which is placed directly under the office of the commissioner, along with the Enforcement Service and Policy and Planning Service, will have three head revenue executive assistants, one each for the regular taxpayers, excise taxpayers, and administrative enforcement.

The operations groups of the bureau are now compressed into three. These are the Taxpayers Assistance, Assessment and the Collection Services.

"We are hoping that with this move, which has the endorsement of the International Monetary Fund, the BIR’s renewed effort will improve substantially," he said. – Donnabelle Gatdula