Finance Secretary Carlos Dominguez III has expressed confidence that the Bureau of Internal Revenue (BIR) would be able to overshoot its P2.08-trillion collection target this year as it faces the “great task” of raising as much revenues as possible to fund the comprehensive effort of defeating the COVID-19 pandemic and supporting the nation’s economic recovery.
Dominguez said the digitalization initiatives put in place by the BIR under the leadership of Commissioner Caesar Dulay, along with its improved administrative systems and dedicated workforce, will enable the bureau to achieve its 2021 collection goal.
The collection performance of the revenue agencies, especially the BIR, “will greatly matter for our nation’s future, Dominguez said.
“Now more than ever, the whole nation relies on the BIR’s bold commitment to provide the revenues needed to support our people and push our country forward towards a strong economic recovery,” Dominguez said in his message delivered virtually via Zoom at Wednesday’s opening of the BIR’s Tax Campaign Kick-off.
“I have no doubt that the (BIR’s) target will not be just met, but will be exceeded again,” he added.
Dominguez noted that in 2020, the BIR was able to exceed its adjusted collection target by 15.7 percent despite the limitations set by the pandemic, by making use of digital tools to efficiently collect taxes.
“That accomplishment goes a long way in reinforcing our fiscal position,” he said.
Last year, 85 percent of total tax payments was coursed through electronic channels, while almost 100 percent of tax returns was filed online, which are both indications of an “irreversible trend,” Dominguez said.
“The pandemic fast-tracked the application of new technologies for tax payments and settlements. The BIR was not behind in this transformation,” he said.
Dominguez said the BIR’s praiseworthy feat would not have been possible without the “heroic cooperation” of the taxpaying public, especially the large taxpayers who contributed the bulk of the revenues collected by the bureau.
“Our diligent taxpayers make the great task of collecting revenues much lighter. Your patriotism will not go unrecognized,” Dominguez said.
Dominguez said 2020 was a difficult period that required the government to make the tough and costly decision to restrict movement in order to save lives and protect communities from COVID-19, while boosting the country’s health care capacity.
Expectedly, this move resulted to reduced business activity and, consequently, lower revenue collections, which prompted the government to adjust the targets for the revenue agencies.
Both the Bureau of Customs (BOC) and the BIR, however, rose to the challenge of raising revenues to sufficiently fund government’s COVID-19 response measures and rebuild the economy,” Dominguez said.
The BIR, for one, was able to carry out its functions despite the pandemi-related community quarantines because of its information infrastructure and digitalized processes, he said.
Dominguez said he is confident that under Dulay’s leadership, the BIR would be able to make progress in applying digital technology in all its essential processes to further enhance the agency’s efficiency.
The signing on Tuesday of a grant agreement between the government and the United States Trade and Development Agency (USTDA) will help accomplish this goal, he said.
Dominguez said he looks forward to the United States (US) and the Philippines’ other development partners to assist the Duterte administration in setting the stage for the age of digital governance in the country.
The agreement for the US$809,450 grant (equivalent to about P38.85 million) signed by Secretary Dominguez and Charge d’Affaires John Law of the US Embassy in Manila aims to assist the BIR in undertaking an in-depth technical assessment of its current information and communications technology (ICT) environment, developing an Enterprise Architecture roadmap/framework, and assessing the organizational framework of its Information System Group (ISG), including recommended restructuring and training programs.
Dominguez said the BIR’s digital transformation program will be “fully functional and irreversible” to ensure the agency’s much improved services and highly efficient collection performance, which are both critical to the country’s sustainable recovery from the pandemic and President Duterte’s goal of building the best possible future for Filipinos.
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