PIA Dispatch - Monday, August 2, 2010

President Aquino calls for aggressive tax efforts

President Benigno S. Aquino III today directed the Bureau of Internal Revenue (BIR) to step up its tax collection efforts and raise the revenue level to at least 15 percent (as ratio to the national gross domestic product) to support vital programs and projects of his administration.

The Chief Executive said he is confident that a 15 percent tax effort ratio from the present 13 percent can be achieved as such has happened before.

"During the time of former President Fidel V. Ramos, we have reached the tax effort ratio of 17 percent. Let us help each other to increase the current 13 percent to 15 percent before my term ends," the President said in a speech during the 106th anniversary celebration of the BIR today at Agham Road in Quezon City.

He expressed optimism that the BIR could achieve its P860 billion revenue target for 2010, even as the administration tries to cope with a budget deficit, which could run up to about P320 billion by yearend.

As the main tax agency, the BIR collects more than 70 percent of government revenues, followed by the Bureau of Customs (BoC). The tax effort ratio measures the taxes or revenues collected by the BIR and the BoC as in relation to GDP.

The Chief Executive reiterated his directive to the BIR to intensify its implementation of the Run After Tax Evaders (RATE) Program, which includes the criminal prosecution of erring businesses and individuals.

The President exhorted businessmen and other large taxpayers to show their sense of patriotism by paying the right amount of taxes so that government can fund vital programs and projects, particularly in infrastructure, education, health, jobs generation and social services.

In her welcoming remarks, BIR Commissioner Kim Henares reported to the President that the bureau was able to collect only P403 billion from the projected target of P420 billion for the first six months of the year. 

The President encouraged the BIR tax collectors to hit the P860 billion target for this year. 

“Nanniniwala ako na ang mga tulad ninyo na nagsisilbi sa gobyerno ay likas na tapat at mahusay sa trabaho. Marami sa inyo ay wala namang ninanais kung hindi ang makatulong sa pagunlad ng ating bansa,” the President stressed.

“Magtulungan tayo upang maitaas man lang natin ang kasalukuyang 13 porsiyento sa 15 porsiyento bago matapos ang aking panunungkulan. Kung nagawa ninyo ito noon, magagawa ulit ninyo ngayon.”

The President said he will also direct the Department of Budget and Management (DBM) to immediately grant rewards to efficient public servants, notably those who can help identify and catch tax evaders and smugglers.

The BIR celebration was highlighted by the awarding of plaques of appreciation by the President to 2009’s top corporate taxpayers, Nestle Philippines, Inc. and Monde MY San Corporation.

The President, assisted by Finance Secretary Cesar Purisima and BIR Commissioner Kim Henares, also awarded plaques of appreciation to the BIR’s private sector partners and donor agencies such as the World Bank, Japan International Cooperation Agency (JICA), Millennium Challenge Corporation (MCC), Asian Development Bank (ADB) and Swedish International Cooperation Agency (SIDA).


Palace stresses mediation role in PAL-pilots row

Presidential Spokesman Edwin Lacierda today said Malacañang is aware that public interest is involved in the dispute between Philippine Airlines (PAL) and its pilots so that it has taken cognizance of the problem and ordered multi-agency mediation efforts. 

Lacierda however clarified that the dispute is still at a point where it can be settled amicably without the need for laying out the basis of government intervention for reasons of national interest.

“Under the Labor Code, the secretary of labor can step into a particular controversy by way of national interest,” Lacierda said but stressed that the PAL-pilots’ row will be settled mutually.

In a Palace news briefing, Lacierda said the overriding concern of President Benigno S. Aquino III in ordering a meeting between PAL pilots and the management with facilitation by some Cabinet secretaries, is the interest of the riding public and some sectors of the economy who will be severely affected should the impasse continue. 

At the memorial mass Sunday commemorating the first death of anniversary of her mother, former President Corazon C. Aquino, President Aquino said he has ordered Executive Secretary Paquito Ochoa and the secretaries of the Department of Transport and Communication (DOTC), Department of Labor and Employment (DOLE) and the Department of Justice (DOJ) to meet today with PAL representatives to get to the bottom of the issue.

A number of PAL flights have been cancelled due to the dispute, which started when 25 pilots decided to move to higher paying jobs abroad. In the last two days alone, PAL had cancelled regional and domestic flights after 13 captains and 12 first officers resigned their posts to join Airlines abroad that offered more lucrative deals.

The President reminded both the management of PAL and the pilots who sought resignation that they have an obligation to the public.