The Bureau of Internal Revenue (BIR) reminded candidates running for national and local posts on Wednesday to start withholding and remitting taxes on political expenses.

BIR Commissioner Joel L. Tan-Torres instructed the agency's regional directors and revenue district officers to write letters to candidates asking them pay the tax equivalent to five percent of their purchases of goods and services.

The BIR chief stressed that the tax is not imposed on the cash donations made by supporters of candidates but "when these donations are used to fund their political campaigns."

The BIR expects to raise extra cash of up to P1.5 billion from the project dubbed "Kandidato Iboto Mo."

According to Quezon City Revenue Regional Director Antonio Montemayor, the letters will be addressed to administrative officers of political candidates and political parties.

Montemayor said he has also instructed his men to visit television stations and other media outlets to make it easier for the BIR to identify the sponsors of these political commercials and collect the tax.

Tan-Torres also welcomed the recent decision of the Commission on Elections (Comelec) to require donors of print and broadcast campaign materials to make themselves known, thus making the collection of the tax easier.