BIR told to hit collection target

BIR told to hit collection target

By Chino S. Leyco

The new administration expects the Bureau of Internal Revenue (BIR), the government’s main tax agency, to attain its collection target this year despite weaker than expected performance in the six-semester.

Finance Secretary Benjamin E. Diokno said the bureau officials, led by BIR Commissioner Lilia C. Guillermo, have committed to improve the agency’s collection performance in the second-half of the year.

Diokno said this commitment was conveyed to him by the BIR executives during their first meeting held last Friday.

The BIR, which contributes about two-thirds to government coffers, is tasked to collect P2.438 trillion in 2022. However, total collections only hit P958.99 billion as of end-May, equivalent to just 39.3 percent of its full-year goal.

Diokno admitted that the BIR was slightly behind target, but told reporters after the meeting, “I expect this year’s revenue target will be met.”

“I told them that I consider revenue collectors as essential workers. Revenues are essential for achieving the goals embodied in our medium term fiscal framework. Hence, they should collect taxes efficiently and fairly,” the finance chief said.

To improve collection performance, Diokno said digitalization is the key as it removes discretion.

Last July 4, Guillermo asked the BIR personnel to work hard in raising P2.438 trillion until the end of the year as she expressed optimism of hitting the collection target despite the economic crisis.

She described the raising of more funds as an “uphill climb” due to Covid-19.

“We have to raise more funds to finance the infrastructure, food, health and security programs of President Bong Bong Marcos,” Guillermo told taxmen.

Guillermo said she will push the dIgitalization of the bureau’s administration and collection machineries to better service the need of taxpayers and reduce the incidence of corruption.

In 2021, the BIR collected P2.086 trillion, above by 0.25 percent against its target set by the Development Budget Coordination Committee of P2.081 trillion.