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Sunday, January 20, 2008

 

House urged to probe
P53.7-B revenue shortfall

By Maricel V. Cruz, Reporter

The joint House Committees on Ways and Means, and on Oversight are urged to conduct an inquiry in aid of legislation into the P53.7-billion revenue shortfall incurred by the Bureau of Internal Revenue (BIR) last year.

The shortfall was reportedly incurred at the same time that the government moved to trim down the budget deficit and even resorted to selling of prime states assets to source additional funds.

Reps. Roilo Golez of Parañaque, Marcelino Teodoro of Marikina City and Juan Edgardo Angara of Aurora called for a motu propio investigation to determine who were responsible for the BIR’s failure to meet its revenue targets for 2007.

“I will ask for motu propio inquiry by the House Committee on Ways and Means and the oversight committees. We should establish who should be considered responsible for the shortfall, from the level of Regional Director to Commissioner all the way up to Finance Secretary. We should also ascertain if targets are realistic,” Golez said in an interview.

In separate interviews, the three lawmakers suggested to the joint House committees to summon BIR Commissioner Lilian Hefti, Deputy Commissioner for Operations Nelson Aspe, and officials from the Department of Finance (DoF), among others, to shed light on the issue.

“BIR should be investigated by Congress regarding their shortfall as this would affect the integrity of our budget which leads to the nondelivery of basic services to Filipinos,” Teodoro said.

For his part, Angara deplored the annual problem on revenue shortfall, saying the problem would certainly affect the government’s delivery of social services.

“There is a serious tax collection and enforcement problem. Congress should look into it using oversight function. Mababa iyung tax effort kung ikukumpara sa ibang mga bansa at nakakalungkot, ayon kasi sa mga experts, ang VAT [Value-Added Tax] ay isa sa pinaka-simple na ikolekta. Maaaring dapat gawing simple ang tax system pagdating sa income tax dahil mataas ang collection noong dati pa nabago ang tax system sa late 1990’s [There is a lower tax effort compared to other countries, and this is lamentable since according to the experts, the VAT is one of the simplest to collect. We might have to make the tax system simpler when it comes to income tax since we had a higher collection before we changed the tax system in the late 1990s.],” Angara pointed out.

Earlier reports revealed that in a command conference Wednesday afternoon at the BIR national office in Quezon City, OIC Assistant Commissioner Corazon C. Pangcog, who heads the Collection Service, presented the BIR Collection Performance from January to December 2007, which also showed that the Bureau missed its targets in all tax types.

According to the yearend report, the BIR collected a total of P712.098 billion from the target of P765.859 billion, incurring a shortfall of P53.761 billion for 2007. It missed its target by P39.574 billion from January to June, and by P15.186 billion from July to December.

At the same time, shortfalls were incurred in all tax types. The Value-Added Tax (VAT) collection was short by P38.187 billion, including the P11.959-billion Reformed Value-Added Tax (RVAT).

Income tax collection was short by P9.715 billion; percentage tax by P4.098 billion; and excise tax by P3.915 billion.

   
 

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