Fix ‘corrupt’ BIR, BOC systems instead of imposing new taxes —Escudero

Improve tax collections by changing the "corrupt" systems in the Bureau of Internal Revenue and the Bureau of Customs instead of imposing new duties, Senator Francis Escudero said Monday.

The member of the Senate ways and means committee made the remark amid the administration’s push for tax measures under the Medium-Term Fiscal Framework (MTFF) which includes excise tax on single-use plastics and value-added tax (VAT) on digital services as well as the rationalization of the mining fiscal regime and the motor vehicle user’s charge or road user’s tax.

“Para sa akin dapat i-improve muna ‘yong collection, pakita muna nila kung saan nga ba nagastos,” Escudero said in an interview on Unang Balita.

For instance, Escudero said, the government must show where the P140 billion from the Road Users’ Tax, which he said should be used for road improvements, were spent.

Escudero also noted that even Finance Secretary Benjamin Diokno stated that the collection of VAT is only at 40 percent.

“Puwes, bakit hindi natin dagdagan ‘yong collection efficiency, gawing 50 o 60 porsyento, bago tayo mag-isip ng panibagong buwis na naman na ang magbabayad na naman ay ‘yong mga dating matitino, mababait at sumusunod sa batas na nagbabayad ng buwis kabilang na sa 40 porsyento at ‘yong 60 porsyento malamang hindi pa rin magbabayad ‘yan,” Escudero said.

For Escudero, one way of improving tax collection is fighting corruption by eradicating discretion in the BIR and BOC.

“Discretion always equals corruption. Minimize discretion, you minimize corruption. Eliminate discretion you eliminate corruption. Sino ba ang inaatasan para mangolekta ng buwis? Hindi ba’t ang BIR. Sino ba ang inaatasan na mangolekta ng duties at iba buwis? Hindi ba’t ang Bureau of Customs? Hindi ba't ‘yang dalawang ahensyang ‘yan ang pangunahing pinagmumulan ng graft and corruption sa ating pamahalaan dekada na ang lumilipas,” Escudero said.

“So marahil ‘yon dapat ang matutukan muna bago tayo mag-isip na naman ng panibagong buwis,” he added.

Asked how corruption could be eliminated from these agencies considering that there had been several leadership changes in the past, Escudero suggested changing the system in the BOC and the BIR.

“Wala siguro sa liderato, nasa sistema…I-identify ang areas of discretion, tanggalin o bawasan ‘yon,” he said.

Among the simple system changes that the government might consider is changing the desk of BOC officials with a table with no drawers or replacing their uniforms with clothing that has no pockets, Escudero mentioned.

“Simpleng pamamaraan na nagbibigay ng panibagong hudyat na bago na ang sistema at panibago na ang umiiral na liderato sa mga ahensyang ‘yan,” he said.

“Mula sa simpleng lamesa o uniporme patungo sa pag-identify ng areas of discretion marahil mami-minimize natin ang corruption at pang-aabuso sa puwesto at marahil tataas ang tax take ng pamahalaan at hindi na kakailanganin pa na magpataw ng panibagong buwis,” he added.

While he bucked the idea of imposing new taxes, Escudero said he was surprised when Diokno immediately shut down proposals to tax luxury items.

“Kinagulat ko lamang kung bakit agad-agad ito isinantabi at ang ginamit na ehemplo ay mga diamante na madali raw itago at napakahirap daw kolektahin no’n pero hindi lamang naman diamante ang luxury good, may yate rin, may eroplano rin, may helicopter din, ‘yon siguro ang mahirap itago,” Escudero, whose wife is a known luxury bag collector, said.

Further, Escudero pointed out that the 1987 Constitution stated that the taxation system of the government must be “uniform, equitable and progressive.”

“Walang sinabi doon na kapag mahirap ng kolektahin ay ‘wag na natin ipataw. Gaya na lamang ng VAT kung 40 percent lamang ang collection efficiency ng VAT at 60 percent ang nawawala, ibig sabihin mahirap kolektahin bakit hanggang ngayon may VAT pa rin at ayaw pa nilang bitiwan ang VAT?” Escudero argued.

In July, Escudero warned that the tax measures proposed by President Ferdinand “Bongbong” Marcos Jr. might not have an easy time in the Senate, if these are seen to “cause misery to an already overtaxed people.” — BM, GMA Integrated News