Despite the devastating consequences of the COVID-19 epidemic over the years, the Bureau of Internal Revenue (BIR) reported it exceeded its P2 trillion tax collection target twice, a “first” in its history.
BIR said it collected P2.186 trillion in 2019 and P2.083 trillion in 2021.
According to BIR commissioner Ceasar Dulay, this was accomplished when the bureau’s systems were digitalized, which was done before COVID-19 struck.
He stated that the BIR had launched 14 projects in its digital transformation.
“In 2019, we were mandated by (Finance) Secretary (Carlos) Dominguez to go into digital transformation. By the time the lockdown was declared in March 2020, we were more or less ready, and that is how we were able to utilize electronic systems,” Dulay said during the BIR’s 2022 National Tax Campaign.
“We were able to take advantage of electronic payments and electronic filing, everything.”
According to BIR estimates, electronic payment (e-payment) channels received 84 percent of the collection in 2021, totaling P1.75 trillion.
There were more than 1,979,000 electronic filers (71%) compared to 814,422 manual filers (29 percent ).
Meanwhile, 93 percent of taxpayers filed their returns electronically. The rest did so manually.
BIR reaches over P2 trillion tax collection target twice
According to the BIR, the Tax Amnesty Program received P4.966 billion, the Run After Tax Evaders program filed 137 cases, and 523 “erring enterprises” were handed closure orders and required to pay P2.946 billion.
In 2021, the agency will have more than doubled its staff, with 3,273 signed appointments compared to 1,647 in 2020.
According to the Department of Finance, the improvements helped fund government programs.
“We are determined to return quickly to fiscal consolidation. In fact, we have already formulated a program to limit our budget deficit and limit our debt to GDP ratio. This is part of our transition plan to the next administration,” said Finance Sec. Carlos Dominguez, who encouraged taxpayers to go digital in 2021.
According to some business owners, BIR’s digitalization has made financial transactions easier and more accessible, especially for younger Filipinos who are now “digital natives.”
“(Salaries) pale in comparison to the other government agencies, example to the judiciary, the Public Attorney’s Office. I’ll give you an example. The entry level of a lawyer in BIR is about P40,000, P42,000. The entry level of a public attorney is somewhere around P60,000, P65,000. My point is, give the employees the commensurate salary, commensurate to the efforts that they contribute to the government,” Dulay said.
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