DOF: P2.5 billion tax collection if estate tax amnesty extended

The Department of Finance (DOF) is expecting to collect P2.5 billion in taxes if the bill extending the availment period of estate tax amnesty until June 2025 is approved into law.

DOF Undersecretary Dakila Elteen Napao disclosed the figure during the Senate ways and means panel hearing on the proposed bill which will cover those who died on or before December 31, 2017 until December 31, 2021.

“We collected P4.8 billion until June 14, 2021 [during the first extension], collected P2.5 billion until March 2023. Since we were able to collect P2.5 billion during the last extension, Mr. Chair, we probably will be able to collect P2.5 billion which is the similar amount generated during the last extension,” Napao told lawmakers.

Gatchalian and Senator Nancy Binay, however, questioned why the agency sounded unsure of its target collection when it supports the passage of the bill and already met its previous target of collecting P6.3 billion out of the extended estate tax amnesty.

“How much can we still collect? We don’t want to extend for the sake of extending, without any valid reason This is a critical piece of information. What is the target [collection] here? Hindi puedeng ampaw support (hollow support). Your support should be based on how much we can collect. Otherwise, we will be wasting time when we won’t even be able to collect anything,” Gatchalian said.

“We have to be given a target, You cannot reason out the pandemic because you already reached your target [amount of collection]. You must give us a compelling reason why we need to extend this [estate tax] amnesty. By your tone, you are only computing now,” Binay added.

Assistant Commissioner Larry Barcelo of the Bureau of Internal Revenue responded that the measure is meant to encourage more people to avail of the tax amnesty and ultimately settle their deficiencies.

“This [collected taxes from estate tax amnesty] will be a part of government revenues which we can use to fund social services. That is our purpose,” Barcelo said.

Gatchalian and Binay, however, insisted on having the said data submitted to them before the bill is sponsored before the Senate plenary next week.

DOF and BIR vowed to comply with the senators’ request.

At the end of the hearing, Gatchalian said that the P2.5 billion expected collection is already “a workable figure.”—LDF, GMA Integrated News