DOF readies list of positions to be covered by Lateral Attrition Act

The Department of Finance (DOF) will draw up soon the list of positions in the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) covered by Republic Act 9335 or the Lateral Attrition Act of 2005.

Finance Undersecretary Gaudencio Mendoza Jr. told reporters that representatives from the BIR and BOC are expected to finalize the list that would be subject to the reward or punishment system provided under the law.

The law will reward those able to meet their target collections and punish those failing to meet their targets.

According to Mendoza, these representatives were given up to the end of this month to submit the list of "attritable" positions with revenue collection targets to be covered by the law.

Mendoza noted that the law will take effect this year as its implementing rules and regulations have been finalized last June by the DOF, Department of Budget and Management (DBM), National Economic and Development Authority (Neda), Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), Civil Service Commission, and the Joint Congressional Oversight Committee.

This law is aimed at improving the collection performance of revenue collecting agencies by putting in place a system of rewards, incentives and sanctions through the creation of a reward and incentives fund as well as a revenue performance evaluation board.

Revenue or collection districts that exceed their respective targets shall be entitled to rewards and incentives amounting to 10 percent of the excess collections.

The DOF official noted that the rewards and incentives fund would be sourced from BIR and BOC collections in excess of their respective revenue targets for the year.

The performance of revenue collectors, Mendoza said, would be assessed by the seven-man Revenue Performance Evaluation Board consisting of three voting and four non-voting members.

Meanwhile, Mendoza said punishment awaits revenue or collection districts of the BIR or BOC missing their revenue targets by at least 7.5 percent. Sanctions to be determined by board include removal from service subject to civil service laws and following due process.