Metro Manila (CNN Philippines, August 8) – The Bureau of Internal Revenue (BIR) is confident it can meet its ₱2.639 trillion collection target for this year with prospects boosted by a newly signed deal with big businesses, accountants and tax groups.
The Philippine Chamber of Commerce and Industry (PCCI), the Philippine Exporters Confederation, Joint Foreign Chambers of the Philippines (JFC), along with the Financial Executives Institute of the Philippines, Management Association of the Philippines, other business chambers and tax associations, said the agreement with the bureau would give them a voice in crafting tax regulation and would enhance compliance.
The agency signed the memorandum of agreement on Tuesday.
“Gusto natin na ma-achieve dito sa BIR ay ang improved or excellent taxpayer service at magagawa natin ito sa pamamagitan ng consultations with the private sector kasi sila naman ang siniserbisyuhan natin, sila ang nakakaalam paano mapapagaan ang kanilang transaction dito sa aming ahensya,” BIR Commissioner Romeo Lumagui told CNN Philippines.
[Translation: Here in BIR, we want to achieve an improved and excellent taxpayer service, and we can achieve this through consultations with the private sector since they’re the ones we’re giving our service to, they’ re the ones who know how to make their transactions more convenient in our agency.]
“Lahat ng mga issuances namin, dadaan sa kanila,\” he also said. \” Sana makapag-komento sila. Yung mga streamlining of processes.”
[Translation: All our issuance will pass through them. We hope they can give their comments on the streamlining process.]
The largest corporations, mostly multinationals and publicly listed – whose tax payments are pooled together under the BIR’s so-called Large Taxpayers Service (LTS) division – account for 63% of the bureau’s total annual collection, according to the BIR.
The recently issued BIR Revenue Memorandum Order No. 27-2023 revised the LTS’ target for 2023 to ₱1.599 trillion, a tad lower than the original goal of ₱1.601 trillion.
But Lumagui explained that the overall target was kept at ₱2.639 trillion, with other revenue sources filling the void left by the LTS group.
Thinning excise tax haul – mainly from sin products – was to blame.
“Nagkaron ng adjustments sa excise tax dahil nakikita natin na bumababa ang konsumo ng excisable articles so nung nagkaron ng adjustment sa collection target dyan ay binabaan tayo dyan pero tinaasan sa ibang mga portions kaya naman nung nagkaron tayo ng goal allocation ay nag-adjust din. May bumaba, may tumaas,” Lumagui said.
[Translation: There is an adjustment in the excise tax since we saw a decrease in consumption of excisable articles. So, when the collection target is adjusted, the goal allocation is also adjusted.]
“We expect that this will increase the chances of attaining our collection target,” Lumagui said when asked about the chances the BIR could meet its full-year revenue goal.
PCCI President George Barcelon chimed in.
