The United States and the Department of Finance (DOF) sealed a grant that will fund the digital transformation program of the Bureau of Internal Revenue (BIR) described as “fully functional and irreversible.”

During the signing ceremonies for the grant agreement Tuesday, Feb. 16, Finance Secretary Carlos G. Dominguez III said the $809,450 support, equivalent to about P38.85 million, will ensure the BIR’s much improved services and highly efficient collection performance.

Dominguez said the US grant is critical to the country’s sustainable recovery from the COVID-19 pandemic and President Duterte's goal of building the best possible future for Filipinos.

The BIR’s digitalization initiative will not merely involve the implementation of a state-of-the-art data management system, he said but will also strive to apply the “cutting edge in the application of new technologies to achieve the best revenue performance."

“I thank the people and the government of the United States, represented here today by Chargé d’ Affaires John Law, for supporting our efforts to harmonize the Bureau’s information and communication technology infrastructure,” Dominguez said.

The agreement for the grant was signed by Dominguez for the Philippine government, and by Law of the US Embassy in Manila on behalf of the United States Trade and Development Agency (USTDA). 

“Your support will make the BIR a more effective agency. It will keep the agency abreast with the rapidly advancing financial technologies. It will dramatically improve the agency’s organizational capacity and collection efficiency,” Dominguez said. 

Law, for his part, said he is "confident that this USTDA grant will lead to, as Secretary Dominguez said, further efficiencies, improved performance, increased security, reduced costs, and greater transparency.”

"This partnership for us illustrates our continued close collaboration on economic development and transparency, including, of course Philippine digital infrastructure modernization," Law said. "The United States is proud and honored to be one of your partners in this effort."

The US grant aims to assist the BIR in undertaking an in-depth technical assessment of its current information and communications technology (ICT) environment, and develop an enterprise architecture roadmap/framework.

The grant also expects to assess the organizational framework of the BIR’s information system group, including recommended restructuring and training programs. 

Dominguez said the Philippines is looking forward to an enhanced cooperation with the US and other countries in the pursuit of the BIR’s comprehensive modernization effort. 

“I assure you that the administrative reforms that we will be instituting in the Bureau of Internal Revenue, through your (the United States’) help, will be fully functional and irreversible,” Dominguez said. 

The modernization of the BIR, along with the Bureau of Customs, has been the administration’s main goal since President Duterte took office in 2016 to dramatically improve their services and boost collection performance.