Recto: Align tax collection system with Korea, Singapore, Japan

In response to the shifting consumer preferences towards e-commerce, the Department of Finance (DOF) wants to bring the country’s tax collection system in line with the best practices of three leading Asian nations.

Finance Secretary Ralph G. Recto said the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) should adopt practices akin to those of countries with advanced tax collection systems like South Korea, Singapore, and Japan.

Recto said this effort should be integrated with the digital transformation initiatives of the government’s two main tax agencies.

Last week, Recto met with BIR Commissioner Romeo D. Lumagui Jr. and Customs Commissioner Bienvenido Y. Rubio to assess their collection performance.

They also discussed potential areas where the Department of Finance (DOF) can extend support.

Recto then stressed the importance of enhancing tax collection efficiency.

He said this can be done by streamlining taxpayer records through a data-sharing agreement between the BIR, BOC, Securities and Exchange Commission Philippines (SEC), and the Bureau of Local Government Finance (BLGF).

Officials from the SEC and BLGF are scheduled to meet with representatives from the BIR and BOC to discuss and advance the implementation of this collaborative program, the DOF said.

As of April 2024, the BIR has already collected  P912.9 billion, a 16.3 percent increase compared to the same period last year.

Meanwhile, the BOC collections grew 6.3 percent in the year’s first four months to P295.2 billion.

For 2024, the government is projected to raise P4.3 trillion in revenues.

Of this amount, the BIR is expected to contribute the lion’s share with P3.05 trillion in taxes, while the BOC is tasked to collect P1 trillion.

The remaining balance will be sourced from non-tax revenues. — Chino S. Leyco