Bureau of Internal Revenue Commissioner Caesar Dulay, former BIR Commissioner Jose Mario Buñag, GSIS Chairman Rolando Macasaet, DOF Undersecretary Antonette Tionko, DOF Undersecretary Mark Joven, San Miguel Chairman Mr. Ramon Ang, Mike Tan of LT Group, friends in the business community, representatives from different associations and public practice, fellow workers in government, distinguished guests, friends in media:
Congratulations to the hardworking men and women of the Bureau of Internal Revenue for your exemplary performance this past year.
The BIR attained 96 percent of the goal we set for ourselves. Some people are criticizing us that we didn’t meet 100 percent or didn’t exceed it. But I think in any class, if you hit 96 percent, medyo okay na. For BIR, medyo okay na, 96 percent. Pero ang BOC, over 100 percent ha.
Through 2018, the Bureau’s collection reached 1.96 trillion pesos or 10.15 percent higher than the 2017 collections. This year, even if the goals are set higher, I am confident the Bureau will achieve a higher attainment rate.
The improving collections have been due to administrative reforms they are relentlessly pursuing, the increased availability of electronic payment options, a tireless Run After Tax Evaders and Oplan Kandado campaign, and the broadening of the tax base. Last year, we achieved a 10.55 percent increase in the number of active registered business taxpayers. So, congratulations to the private sector there.
Recall that in 2017, the BIR and the Bureau of Customs busted the “biggest fish,” so to speak, by cracking down on Mighty Corporation. The crackdown resulted in the biggest tax settlement in our history and forced that company to get out of the cigarette business. This year, we have heightened our vigilance against illicit manufacturing and trade. A Strike Team has been formed by the Bureau to accomplish this mission. The team was responsible for the confiscation of several unregistered cigarette-making machines and various brands of counterfeit and untaxed finished tobacco products from illegally operating factories in Pampanga, Pangasinan and Bulacan, which were destroyed a few days ago in Porac. So, congratulations to the Strike Team.
The accomplishments of this Strike Team, and the personnel behind RATE and Oplan Kandado all send a clear two-pronged message: Under the Duterte administration, illicit cigarette manufacturing will not be tolerated and tax evaders will be hounded ceaselessly.
In the revenue regions, I am happy to note the Bureau has effectively implemented its Centralized Arrears Management system. This provides the Bureau the re-engineered processes for managing both accounts receivables and delinquent accounts.
It is notable to mention as well that the Bureau has availed of additional options and facilities to enable taxpayers the convenience of transacting by electronic means. In the future, all transactions with our clients — the taxpaying public — should be seamless and instantaneous. It will be more efficient to follow an electronic rather than a paper trail. The TRAIN law encourages us to rapidly develop an electronic filing and payments system.
It is our mission to improve taxpayer service. The VAT refund system will work within the 90-day period for settling claims. We will observe closely the provisions of the Ease of Doing Business law aiming more efficient delivery of government services. We will continue to streamline our administrative processes, such as the creation of Fast Lanes for simple transactions. We will continue toimprove our systems to lessen downtime and improve taxpayer satisfaction.
This year, the Bureau will implement the fuel marking and testing program to plug leakages in VAT collection from fuel products. We will validate and monitor sales through Cash Register Machines and Point-of-Sale Post Evaluation System, using computer-aided audit tools. We will develop an e-invoicing and e-receipting program. Fortunately, technology is on our side and we will take full advantage of new hardware and software to make our operations more efficient.
The best way to collect the right taxes, however, remains to be voluntary compliance. This is the reason we launch this tax awareness campaign every year. We expect taxpayers to pay their taxes promptly and properly in the same way that they expect us to spend every peso that the Bureau collects in investments that would help make growth truly inclusive for every Filipino. They have entrusted in us not only their hard-earned money, but their hopes for a better and more vibrant economy.
This year, I hope we can effectively deliver the message that prompt and proper payment is not just a duty citizens bear. We must convince our taxpayers that we are partners in building a beneficial future for our children. We must link tax collection with the strategic investments now being made to ensure our economic growth is both sustainable and inclusive.
The campaign we launch today is about building a strong partnership with our taxpayers. Ours is a shared responsibility for building a society that will thrive in a competitive world.
We, whose responsibility is to produce the revenue stream to fund the government’s massive infrastructure program and investments in human capital development, play a key role in our people’s economic success. I urge you to sustain the effort at completely modernizing tax administration in thiscountry. I trust we will deliver, and we will deliver well.
Thank you and good day.
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