The Department of Finance (DoF) explored technologies of global payment solutions provider Visa to upgrade the country’s digital tax system and cybersecurity.

Finance Secretary Ralph Recto last 18 April completed his tour of the Visa’s Cyber Fusion Center in Ashburn, Virginia in the United States.

“The purpose of the visit was to learn from Visa’s best practices for Secretary Recto’s goal of fully digitalizing the country’s tax system,” DoF shared Saturday.

Recto had said the Philippines still needs to modernize its system to collect all due taxes, including those from e-commerce players and other digital service providers.

“The challenge is we’re moving toward e-commerce. They have to declare income tax and it is harder to collect. Can we connect Lazada to the system of the Bureau of Internal Revenue? I’m open to that, but it will take time because we have to digitize and so forth,” he said.

Recto aims to collect P4.3 trillion in taxes this year or P20 million daily.

“During the tour, Visa expressed strong support for the Philippine government’s digitalization efforts and offered assistance in enhancing revenue collection and disbursement capabilities,” DoF said.

To ensure smooth tax processes and ensure taxpayers’ money goes to improving public services, the DoF said it also continues to consult with cybersecurity professionals.

Easier tax take

“Diligent taxpayers make the great task of collecting revenues much easier. When both sides effectively play their roles, we pave the way to progress with certainty,” Recto said.

“The Visa center is a secure facility that facilitates rapid cyber threat detection and centralized control for cyber operations,” DoF added.

The Bureau of Customs and the Department of Science and Technology recently reported their data was hacked, affecting access to shipment data and plans for scientific research.

Recto’s visit to the Visa facility came after the World Bank announced it is developing a Country Partnership Framework with the government to help it tap the resources of various institutions regarding digitalization and infrastructure projects.