P38 B in taxes collected from professionals in 2006

The government collected a total of P38 billion in income taxes from businessmen and professionals like doctors and lawyers last year, Quezon Rep. Danilo Suarez reported yesterday.

"It was the first time the Bureau of Internal Revenue (BIR) raised such a huge amount from this group of taxpayers who are known to cheat on their tax obligations," he said.

Suarez heads the House oversight committee, which monitors the performance of revenue agencies, principally BIR and Customs.

He said the P38 billion paid by businessmen and professionals last year was about eight times more than the average amount the BIR collected from this group in previous years.

"This group of taxpayers contributed less than P5 billion, or less than five percent, to the total income tax take of the government. The 95 percent of about P100 billion in income taxes came from salaried workers," he said.

Suarez said it was ironic that businessmen and professionals, who can afford to pay more, were not contributing their commensurate share to the tax burden.

He pointed out the phenomenal increase in collections was the result of strict regulations enforced by the BIR and of the enactment of a law limiting the tax-deductible expenses of this group of taxpayers.

Suarez urged the BIR and Customs to maintain their "good" revenue collection performance.

He said the BIR should improve its record since it fell slightly short of target last year, while Customs exceeded its collection goal.

"Keep up the good work," Suarez added.

In a related development, Isabela Rep. Rodolfo Albano lll urged Suarez and his oversight committee not to meddle in the job of the Attrition Board, the body created under the Attrition Law to evaluate the performance of revenue collectors.

The inter-agency board, chaired by the secretary of Finance, will determine who gets fired or reassigned among revenue officials for failure to meet their collection targets.

Albano said lawmakers should leave the board alone in doing its job, lest they be suspected of placing their protegés in lucrative posts or influencing its decision to favor certain BIR and Customs personnel.

"We will be suspect if we meddle in the job of the evaluation board. We should not do that," he said.

"What we can do is call the attention of these agencies, in very general terms, if they are performing poorly. We can praise them for good performance. But we cannot determine who gets what posts, who gets reassigned, demoted or promoted," he stressed.

Suarez had announced that he would recommend who among key BIR and Customs personnel would be sacked, kept in their present posts, be reassigned, or promoted.