He just does it!

Finance Secretary sounds more like a commercial from Nike than from Energizer.

"It does not matter if I stay for a day or months or years," he said. "I am guided by one thing – doing the right thing. That means doing the right thing consistently and accepting the consequences even if some people are critical of what I am doing."

Camacho lists down two priorities: one is to improve revenue generation and the other is economic promotion.

Government’s two major revenue drivers are the Bureau of Internal Revenue and the Bureau of Customs. Both the BIR and the BoC are supervised by the Department of Finance.

To be implemented this year are several tax measures aimed at increasing revenues. These are refinements of existing taxes rather than new taxes.

"I cannot be impatient or I would lose faith and give up. I have to be persistent and single-minded. If I am able to implement one measure a month or every quarter, then I know I have made progress, made a step forward. The trick is not be overwhelmed by all the obstacles."

Beefed up collections

First on the list is a cap on representation expenses and allowances. "This may not be a popular measure but we just have to do it. It will be done through revenue regulation," Camacho said.

An excise tax will also be slapped on sports utility vehicles with over nine seats such as Ford Expeditions. Asian utility vehicles with over nine seats such as the Revo will either remain tax-exempt or will be taxed a lower rate.

"We recognize that there is a social impact on some vehicles with over nine seats that are used as public transportation. We’re finding ways and means to exempt or lower taxes on these. As soon as these are ironed out, then we will be able to implement the tax on the luxury vehicles with over nine seats," he said.

Working closely together with BIR Commissioner Rene Banez, Camacho also hopes to capture lost revenues from property rental taxes and income taxes of professionals like doctors and lawyers. Right now, the filing of income from property rentals is included in the annual income tax returns of property owners.

"We are still looking for that bright idea that will enable us to more efficiently collect taxes from professionals in the short-term," Camacho said. At present, there are moves to align the taxes of professionals with the corporate sector but this will take time to implement.

To improve corporate tax collections, the BIR will benchmark or look into common trends and characteristics of different industries. This will make it easier for the BIR to spot abnormal financial patterns during their regular corporate audits.

The big stick

"It’s one thing to say we are committed to doing it and another thing to say we are capable of doing it. We do not have a big, strong stick to keep them in line. Government is handicapped in terms of resources," he said.

To help government put up air-tight cases against smugglers and tax evaders, the DoF and the BIR are currently talking with private volunteer groups –lawyers, accountants and bankers.

In the long-run, upgrading the status and salaries of government workers to the same level as their private sector counterparts will also help.

"Efficiency is the key. There may be a need for less people in government but, of course, we will be doing this when there are enough jobs or opportunities for them outside of government service," he said.

Stable framework

Given his investment banking background, Camacho believes investors, both local and foreign, will be most attracted by a stable, long-term framework for doing business in the country. This means cutting red tape and getting rid of bottlenecks within government agencies.

While official figures for 2001 is expected to be released only in the third week of January, preliminary figures show government has kept within its budget deficit target of P145 billion. In part because of expected higher revenue collections from the BIR and BoC, this year’s deficit target is lower at P130 billion.

"I don’t think of a finish line. I just do my best one day at a time. Hopefully, I will make a difference," he said.