BIR seeks P1.4-T collection goal for 2014 trimmed down
July 22, 2014
The Bureau of Internal Revenue (BIR) has asked higher fiscal authorities to reduce the P1.4-trillion collection goal for 2014 to a more realistic level after it sustained a deficit of more than P52 billion during the first six months of the year.
However, BIR Commissioner Kim S. Jacinto-Henares said yesterday she is not much concerned if the Department of Budget Coordinating Committee (DBCC) will heed her suggestion as the men and women of the agency are doing their best efforts.
She said next year’s collection goal will be P1.7 trillion.
DBCC is composed among others of the Department of Finance, the Bangko Sentral ng Pilipinas and the National Economic Development Authority.
Henares said regional directors, district officers and other collection officers need not worry if they cannot hit their respective collection targets so long as they can justify and explain them.
Under the lateral attrition law, a tax collector is liable for demotion and transfer to unimportant jobs if he fails to meet his assignment.
Records showed that the bureau, the foremost tax collectors of the government, raised only P642 billion from January to June which was P52 billion short of the goal of P695 billion.
Insiders said many revenue field offices including the large taxpayers service (LTS) based in the national office were not able to reach what they called the unreasonable collection assignments.
They said DBCC through the years has not been directly consulting the BIR on the goal allocation program, basing it primarily on the budgetary needs of the government and not on the actual economic condition.
They likened the government to a prodigal family that spends more than it earns.
Earlier, Henares cited several reasons for the collection shortfall, including slowdown in government spending and the truck ban in Manila which has been delaying the release of imported raw materials and other goods at the country’s premier ports.
She also mentioned the decline of value-added tax remittances by many large taxpayers which is now the subject of an intensified investigation.(Jun Ramirez)