"This law exists for a reason."
Early this year, the Department of Finance noted that the country has fallen into recession amid the COVID-19 pandemic. The community quarantine caused many businesses and companies to shut down, and employees to lose their jobs. Accordingly, the government’s fiscal targets have been modified and significantly reduced several times this year, down to P1.69 trillion.
However, the Bureau of Internal Revenue reported that it was able to collect P1.58 trillion from January to October this year, despite the persisting COVID-19 pandemic. This amount exceeded its target of P1.4 trillion revenue collection for the same period. Likewise, the Bureau of Customs reported that it was also able to surpass its target, with a collection of P448.95 billion for the same nine-month period. The amount already accounts for 88.7 percent of the total 2020 target of P506.15 billion.
The BIR and BOC have both been applauding their efforts to increase revenue collection. Categorically, I join them in recognizing their work in ensuring that the country hits the target revenue collection. However, this puts to question the implementation of the Lateral Attrition Law of 2005.
We have been assured, time and again, that this law will be properly implemented when the conditions of the law are met. For reiteration, the law provides incentives to those who have exceeded their respective target revenue collection in proportion to their relative contribution to the excess collected. Meanwhile, it also prescribes penalties for those who fall behind their targets by 7.5 percent such as removal from office, subject to civil service laws and rules and regulations.
Fifteen years since its promulgation, we have barely seen, if not at all, the full implementation of this law. The only time I can recall that this law was properly implemented was during the time of President Arroyo when employees of the BIR and BOC voluntarily resigned, meanwhile a sizable amount was given to those who exceeded their targets. Now that both agencies have reported exceeding target revenue collections, it is high time that we demand the application of the law to fully see its benefits. While efforts of the tax collecting agencies are truly remarkable, this cannot set aside the fact that there is an existing law that merits implementation under the given circumstances. I repeat, many times, the agencies have proudly achieved their targets, yet there was no report whatsoever of the successful implementation of the Lateral Attrition Law.
The law was passed for a reason. The law intends to curb corruption by rewarding tax collectors who have been performing well and to encourage others to do their job well too. It complements the administration’s vigorous campaign against corruption.
This is the perfect time to put this into action and allow the law to realize its full potential given that the government is continuously beset with difficulties in curbing corruption and in reaching its fiscal targets in this pandemic. Give this law a chance.
With this, I call on the Executive, particularly the Department of Finance, to do its mandate and properly implement the law. Let it be known to the public how this law was implemented (or not implemented) since its enactment. As the country needs more funds for COVID-19 and disaster response, this law will help raise funds needed to produce the necessary medicines, equipment, and supplies for COVID-19 hospitals, and increase available funds for emergency response in disaster-stricken areas. In reality, we have many laws in place on revenue collection. However, the inability to execute these laws hinder the full attainment of revenue targets.