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PIA Press Release
Wednesday, January 25, 2012


BIR Commissioner explains low collection of BIR-8

TACLOBAN CITY, Leyte, Jan 19 (PIA) –- Despite the inability of the regional Bureau of Internal Revenue to meet its target collection for year 2011, BIR Commissioner Kim Jacinto Henares still expressed satisfaction on the performance of the tax collection office in Eastern Visayas.

Commissioner Henares explained that the low collection was attributed to the decreased government spending for projects.

BIR regional director Diosdado Mendoza said that in his less than three months as head of the agency before the year ended last year, the 2011 collection was 3 percent higher than the P3.75 billion collected in 2010 but P436.67 million lower than the P4.30 billion target for last year.

BIR records show that the agency was only able to collect P3.87 billion or a shortfall of 10.13 percent from its tax goal of P4.30 billion last year.

Less government spending on projects in the region resulted in the agency’s inability to reach the target. The government collection of value added tax (VAT) is a major source of revenue for the agency.

For this year, Henares pegged P4.4 billion as target goal for the BIR regional office.

Henares said that higher target goals are given to regional offices to achieve regardless of the inability of a regional office to reach the year’s target.

The highest BIR official also said that performance of revenue collectors are evaluated every six months and that under the Attrition Law, revenue collectors who commit shortfall of 7.2 percent of their collection can be subjected to actions which include transfer of assignments or even dismissal from service. (PIA-8)

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