Recto urges BIR to boost revenue via digitalization

By Francis Allan L. Angelo

Finance Secretary Ralph G. Recto has urged the Bureau of Internal Revenue (BIR) to sustain revenue improvements through digitalization to meet public needs and drive economic growth.

Speaking at the BIR’s 120th Anniversary on August 1, 2024, Recto emphasized the critical role of consistent revenue collection in funding essential projects and avoiding debt accumulation.

“For the truth is, when fiscal targets are not met, it is the people who pay for such failure. Projects that would improve their lot today are denied of funding, creating a pile-up of debts that will be paid by our children tomorrow.”

Highlighting the benefits of sustained revenue improvement, Recto noted that it enables investments that spur economic growth, create jobs, improve incomes, and increase taxpaying capacity.

He called for leveraging digitalization to simplify tax processes, making it easier for taxpayers to comply.

“I am sticking to my guns that more revenues can be raised by simplifying, shortening, streamlining, and speeding up the process, without leaving the government shortchanged, than a slew of higher, newer tax laws,” he said.

Recto emphasized the deployment of information technology as a means to ease the tax payment process and enhance compliance.

He encouraged the BIR to continue its digitalization initiatives, including the Online Registration Update System, Optimized Knowledge Management for Chatbot Review, and the Electronic One-Time Transaction System.

“Siguraduhin po natin na integrated at konektado ang mga ito para sa walang tigil na serbisyo sa ating mga taxpayers at sa mas mabisang pangagasiwa ng buwis,” he added.

The Finance Chief also stressed the importance of inter-agency coordination and data-sharing to tackle tax leakages and loopholes.

He highlighted the Swift Corporate and Other Records Exchange (SCORE) Protocol, a pilot project between the Securities and Exchange Commission (SEC) and the BIR, as a key initiative to enhance tax collection efficiency through harmonized corporate records.

Recto affirmed that such partnerships are essential for the successful implementation of new tax laws, including the proposed value-added tax (VAT) on digital services.

He underscored the need for continuous capacity-building within the BIR to ensure effective law enforcement.

“Kasi alam naman po natin na madaling magsulat ng batas, pero mahirap magpatupad nito,” he noted.

Recto also called for strengthening the BIR’s human capital through training, improved equipment, enhanced welfare measures, and compensation adjustments to support their mission.

For 2024, Recto tasked the BIR with collecting PHP 3.05 trillion, translating to a daily target of PHP 8.2 billion or PHP 342.5 million per hour.

The goal sets a high revenue production expectation of PHP 191.5 million per employee annually.

“Hindi pwedeng pumalya ang ating pagsisikap. Dahil ang pagkamit sa Bagong Pilipinas ay nakasalalay sa tagumpay ng BIR,” he concluded.