House Bill (HB) 2996, described as a "carrot-and-stick" scheme to help ensure revenue collection efficiency, will be the second of eight tax proposal of the Arroyo administration to be approved by congressmen.

The first, the hike in taxes for the so-called "sin" products, was approved by the Lower House last month to avert a possible downgrading of the country’s credit standing that could result to higher interests in foreign loans.

"We are again prepared to stay until dawn so that we can pass the lateral attrition bill on its third and final reading. We really need to work doubly hard because there are so many urgent measures that we need to attend to. We should be able to pass at least four new tax measures before we go on our December recess," said House Majority Leader Prospero Nograles.

Also lined up for approval are the proposed Rationalization of Fiscal Incentives bill and the proposed R907.6-billion national budget for 2005.

House Deputy Majority Leader Fredenil Castro, together with House Assistant Majority Leaders Oscar Gozos and Arthur Defensor, said administration lawmakers are prepared to fully cooperate in passing proposed measures that are deemed crucial in the government’s battle against the ongoing financial crisis.

Principally authored by Quezon Representative Danilo Suarez, HB 2996 was approved on second reading after lawmakers staged a ten-hour marathon session last Tuesday.

Nograles said the House will vote on the measure on Tuesday "after all amendments are printed in clean copies and distributed to members for their study."

He explained that the lateral attrition law should breeze through the legislative mill because the measure has already been approved by both chambers during the 12th Congress but was vetoed by Mrs. Arroyo.

"We do not expect a similar problem now because the bill is among the revenue generation measures being pushed by Malacañang," Nograles said.

The proposal seeks to set a reward fund to be distributed to revenue collectors who will be able to collect taxes in excess of government-set targets.

On the other hand, poor collection efficiency will mean transfer or dismissal of employees involved.

While administration solons are preparing to approve the measure, partylist lawmakers appear adamant in supporting the measure.

Anakpawis Representative Crispin B. Beltran said there are still "countless technical and legal flaws" in the measure that requires rejection.

"It has no merits whatsoever. The very premise that employees are to blame for low collections is very unjust. It’s obvious that the real objective of the bill is to overhaul the Bureau of Internal Revenue, the Bureau of Customs, and 20 other agencies it targets and prepare them for full privatization," Beltran said.

He pointed out that the bill is "inherently biased against government employees and violates civil service regulations protecting job security and the right of employees to due process."