Sub-optimal collection among revenue units

Senator Richard J. Gordon on Thursday flagged alleged inefficiencies at the main collection arms of the government whose chronic inaction translates to inability to finance important projects and programs in such areas as education or even national security.

At the Senate Blue Ribbon Committee meeting, he called on the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) to ensure the timely and proper collection of duties and taxes to bolster collection and by this measure eliminate the need for the Tax Reform for Acceleration and Inclusion or TRAIN law intended merely to boost collection.

Had the agencies as the BIR and the BoC been stringent in collecting duties and taxes, “there would have been no need to burden the people with TRAIN,” he said.

He claimed that from 2012 to 2016, the government failed to collect potential revenues amounting to P423,246 billion in the form of VAT and other taxes allegedly due to smuggling by China traders.

“We don’t have to increase taxes if we can curb smuggling, if we can curb the non-payment of tax. It behooves on all of us here – executive, legislative and judiciary — to work together to make sure that we correct the situation,” he said.

According to him, the inefficiency of the collection units of government is simply “anomalous.”

Gordon particularly noted the reported variance in trade data from China alone. He said these were foregone revenues that could have funded some of the country’s pressing needs such as the shortage in classrooms and boosting the country’s military capability, among others.

This pertained in particular to trade data showing a variance in the reported China exports to the Philippines and the country’s own imports showing a 60 percent discrepancy in 2017, 57 percent in 2015 and more than 48 percent in 2016.

After making the appropriate calculations he said: “P423 billion can wipe out the classroom shortage in the Philippines. We have a shortage of 113,995 classrooms nationwide. It (the discrepancy) can also be used to strengthen our defense capabilities through the procurement of at least 23 frigates at P18 billion each or 81 F-35A fighter jets at P5.2 billion each. P423 billion can be used for the government’s Build, Build, Build Program or other development projects,” he said.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.