BIR sets system-wide revamp

MANILA, Philippines - The Bureau of Internal Revenue (BIR) will be implementing various administrative measures including a system wide revamp in order to meet next year’s higher revenue goal of P1.066 trillion, its top official said.

The interagency Development Budget and Coordination Committee (DBCC), the group that sets the country’s macroeconomic goals and targets, has assigned a higher collection goal of P1.066 trillion to the BIR.

This is the first time in the BIR’s 106th year that it has been given a collection target of least a trillion. This year, the BIR’s goal is to raise P940 billion.

BIR Commissioner Kim Henares said that to achieve the 2012 target without new taxes, the agency would continue to implement administrative reforms.

There will be strong focus on the performance of BIR ranking officials and employees.

She said that there would be continuing revamps of ranking officials and employees as part of their regular performance review.

“There are always revamps and changes so that the BIR can perform better,” the BIR chief said.

Henares stressed that under her leadership, the BIR has been regularly assessing the performance of officials and employees.

Aside from the higher target for the BIR, the DBCC also set higher macroeconomic assumptions and numbers for 2012.

It is estimated that the budget deficit would hit roughly P286 billion from the earlier proposal of P270 billion but still remain at 2.6 percent of gross domestic product (GDP).

This year’s budget gap is expected to hit roughly P290 billion to P300 billion or 3.2 percent of GDP.

Under the proposed budget for next year, revenues will go up to P1.6 trillion from this year’s program of P1.4 trillion.

The Bureau of Customs (BOC), the second largest revenue agency, meanwhile, has set a goal of P365 billion is also above this year’s P320 billion goal.

This year’s budget deficit ceiling has been set at roughly P290 billion or 3.2 percent of GDP.