THE Bureau of Internal Revenue (BIR) has reported a decline in its tax collections, attributing the slowdown to the ongoing issues surrounding infrastructure projects within the Department of Public Works and Highways (DPWH).
“I’m not sure if it can be attributed to the flood control issues. But there was definitely a slower collection because of the issue, because of the DPWH,” BIR Commissioner Romeo Lumagui Jr. told reporters.
While BIR revenue increased by 11.4 percent to P2.14 trillion from January to August, Finance Secretary Ralph Recto confirmed the decline in collections and cautioned that a continued downturn could signal slower economic growth.
The government is taking steps to address the situation. President Marcos ordered an audit of flood control projects during his State of the Nation Address, denouncing corruption that has led to recurring flash floods.
An initial review found that 15 contractors secured P100 billion worth of flood control projects in the past three years, representing 20 percent of all such projects.
In addition, the BIR is working to improve tax collection from online businesses, issuing a circular requiring electronic marketplace operators to withhold a one-percent tax on their sellers and merchants.
metrosundaily
