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PIA Press Release
2006/10/20

BIR asks LGUs' help in raising local revenues

by Rey Anthony Chiu

Tagbilaran City (20 October) -- Wanting to contribute to the pooling of funds crucial for the infrastructure backbone and social services in support of President Gloria Macapagal Arroyo’s economic blue print, Bureau of Internal Revenue (BIR) District officer and lawyer Rogelio Balaga asks for cooperation from local government units in this year’s attainment of tax revenue targets.

Data which popped after the BIR tax compliance verification drive, shows that several local government units may have been uninformed in releasing business permits to establishments.

Furthermore, the people could help when they demand receipts from the establishments they are dealing, BIR said. The receipts reflect the transactions and puts in to the government the corresponding duties due the establishment in forms of taxes. The taxes again go back to the provinces in funds for infra and social services, Balaga explains.

The lapses have caused so much losses to the government, a potential source of funds to finance prioritized rural developments, Balaga shared during the weekly Kapihan sa PIA.

Before establishments could get the mayor’s or local business permits, owners need to secure a BIR compliance certificate, Zenaida Pancito, BIR assistant revenue district officer added during the forum aired live over a local radio station.

In their tax compliance verification drives, the BIR also inspects establishments compliance especially in posting notices and also sees to it that the establishments deals fairly with consumers according to the law. Non compliance means penalties which the establishment is imposed upon, Pancito said.

With a target set to surpass last year’s record collection by 28%, Balaga said the local office is yet to fully cover the collection amount last year. He however is a bit optimistic that the Bohol Revenue District Office can still make it, noting that there are still two months to be accounted before the year ends.

“The office has a big target for this year”, stresses Pancito who asked understanding from establishment owners of BIR’s role in their tax compliance verification drives.

The perception is that BIR caused the rise in prices with the implementation of the 12% Expanded Value Added Tax, she said.

The rise in prices of imported fuel and not the EVAT has adversely affected the increase of practically all commodities otherwise not deemed value added exempt, Pancito explains.

It may recalled that last year, Bohol RDO topped Central Visayas in revenue collection, a fact that was also made as basis for this year’s targets.

Generating funds to finance locally prioritized projects, BIR District Officer Atty. Rogelio Balaga explains a point during the weekly Kapihan sa PIA aired live over DYTR. Wanting to surmount a 28% rise over last year’s collection has proven to be a tall order for BIR-Bohol. Tall as it is, Atty Balaga said it is not impossible with the help of LGUs and the people. (PIA) [top]

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