"The temptation to succumb to corruption can be hard to resist."
"The temptation to succumb to corruption can be hard to resist."
The Department of Finance reported a revenue collection of 94.7 percent for the period of January to September 2018, including those contributed by the TRAIN Law. Of the total amount, the tax gain generated by TRAIN reached P41.9 billion. This is P2.3 billion short of the targeted P44.3 billion.
Revenue collection is a vital factor in determining the annual budget that will fund the government’s programs. Full revenue collection also ensures elimination of corrupt practices. The 94-percent revenue collection in 2018, along with the implementation of the TRAIN Law, looks promising.
As with any government agency, the agents from the Bureau of Internal Revenue and the Bureau of Customs, the two important agencies in tax collection, are equally compensated through their salaries from taxpayers’ money. It is only just that we demand from them efficient, transparent, and full tax collection.
This is then a good opportunity for the Finance Department to fully implement the Attrition Law. The Attrition Law was enacted in 2005 with the aim of boosting revenue collection through a rewards and incentive system where tax collectors who exceed expectations are given incentives accordingly, whereas those who fall behind their targets are imposed penalties. Time and again, I have emphasized the importance of this law. Any tax reform sans proper implementation of the Attrition Act will not be able to achieve its full potential.
The second tranche of the TRAIN Law, which imposes higher fuel excise taxes, is being implemented this 2019. Same as last year, we are expecting a higher revenue collection at the end of the year.
Meeting targets deserves rewards. While the argument can be made that collectors here are doing jobs they are paid to do, in reality, the temptation to succumb to corruption can be hard to resist. This Lateral Attrition Law acknowledges this. It provides incentives for efficient collection and arrests the spread of improper collection practices. If the momentum is maintained and targets are met, finally, the rewards under the Attrition Law, had it been in effect, would be enjoyed across the board in the two agencies. Let us start the new year right by revisiting the Attrition Law and the revenue targets for this year.
