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Friday, February 29, 2008

 

BIR tax amnesty collection falls less than
half of target a week before deadline

By Chino S. Leyco, Reporter

A WEEK before its deadline, revenues raised from the Bureau of Internal Revenue’s (BIR) tax amnesty program are way below target, the agency’s head said.

BIR Commissioner Lilian B. Hefti said the bureau raked in P1.6 billion from September last year to February 27 this year, or less than half the agency’s target of P4 billion by next month.

“Taxpayers are encouraged to go straight to banks. They don’t need to review for any BIR personnel,” Hefti told reporters, referring to reports that taxpayers were discouraged to avail of the amnesty after learning they need further review before approval.

“Taxpayers are delaying their punches. We can’t tell how many will avail, but they should,” Nelson M. Aspe, BIR deputy commissioner for operations said.

Aspe said delinquent taxpayers who fail to avail of the program will be prosecuted.

This latest in a string of amnesties the government has pursued is designed to enhance revenue administration and collection by pardoning all unpaid taxes imposed by the government for taxable year 2005 and prior years, under certain conditions.

The program began on September 16 last year and will end on March 6 this year. The BIR earlier said it raised an estimated P500 million in the first two months of the program.

Last year, the bureau’s total collection was seven percent short of its P765 billion full-year goal. The P712.098 billion generated however was nine percent higher than the P652.732 billion raised in 2006.

After failing to hit targets in the first six months last year, the bureau registered higher collections in the July to December period at P377.387 billion.

This year, the BIR is asking the Department of Finance to adjust its collection goal to below P800 billion, or close to the P765 target for last year.

But Finance Secretary Margarito B. Teves turned down the bureau’s request, saying it was premature to rule out hitting revenue targets this year.

The BIR contributes around 70 percent of the government’s tax revenues.

New measures against smuggling set

Teves also said the finance department will implement new administrative measures to curb rampant smuggling through the country’s free ports.

Starting next month, the Bureau of Customs will pilot fuel marking technology at the Subic Bay Freeport Zone, Clark Special Economic Zone, and the Batangas port to ensure that the appropriate taxes and duties are paid on oil imports.

“We have issued a department order to tighten the monitoring of importations and grant of tax privileges to enterprises in the Freeport zones, such as through information sharing between [Customs] and the Freeport administrators,” Teves said.

He added Customs has likewise signed a memorandum of agreement with the Subic Bay Metropolitan Authority for closer coordination on the importation made by Subic locators.

“The [Customs] imposed a moratorium on the accreditation of customs bonded warehouses (CBWs). This is after reports that CBWs were used as conduits to smuggling activities. [It] has started conducting post-entry audit on imported cigarettes, alcohol products and motor vehicles based on the information, Teves said.

Senate data showed smuggling in the country amounted to P120-billion a year.

  
 

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