FINANCE CHIEF CITES BOC, BIR INITIATIVES

DEPARTMENT of Finance Secretary Ralph Recto commended the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR) for their respective initiatives that he said help drive higher the country’s revenue collection last year.

In a statement released last December 27, 2024, reviewing the performance of the country’s two top revenue generators under his office for the year, the finance chief said the positive development came despite these agencies’ challenges.

“I commend both the BIR and BOC for their accomplishments this year. Their job is definitely not a walk in the park.

“Dala-dala nila sa kanilang mga balikat ang ekonomiya at kinabukasan ng bansa. At dahil po sa kanilang patuloy na pagsisikap, napondohan natin ang mga prayoridad na proyekto at programa ng ating Pangulo para sa mga Pilipino ngayong taon.

“Rest assured, we are working non-stop to strengthen the efficiency, transparency, and integrity of our tax system to inspire trust and compliance among our taxpayers,” Recto said.

He noted that as of November 2024, total tax collections reached P3.55 trillion, 11.5 percent higher for the same period last year.

The BIR’s share increased by 13.9 percent for the period under review or equivalent to P2.67 trillion while the BOC collected P850 billion, an improvement of 4.7 percent also for the same period.

Overall, the DOF said it expects the 2024 revenue take to reach P3.82 trillion, which is 11.4 percent higher than in 2023.

The increase is also a little higher at 14.4 percent of the country’s GDP (gross domestic product) compared to 14.1 percent the previous year.

Recto highlighted the continued digitalization of the two agencies’ processes and their initiatives in combatting tax loopholes (tax evasion and smuggling) as factors in the increase in the government tax take.

The BIR’s ‘Digital Transformation (DX) Program’ is currently at above 59 percent (16 out of 27 projects completed or in pilot stage) although this pales in comparison to the BOC, which has already digitized about 97 percent of its systems and process with the introduction of three new systems in 2024, namely: the ‘Overstaying Cargo Tracking System,’ the ‘Enhanced e-Travel System,’ and the ‘ATA Carnet Monitoring.’

Among the BIR’s completed projects in 2024 was the was the Online Registration and Update System (ORUS), a web-based system that provides an end-to-end process for registration and updating of taxpayer registration information.

As of November 2024, the BIR issued 470,387 digital Tax Identification Number (TIN) IDs through the ORUS.

The BIR also collected over P4.37 billion with the completion of its enhanced Electronic One-Time Transaction System (ONETT) from the issuance of 33,198 Electronic Certificate Authorizing Registration (eCAR) from January to November 2024.

Aside from its new systems, Recto noted that 16 Collection Districts, three subports, and five stand-alone offices of the BOC were awarded ISO 9001:2015 Certification as of the end of November 2024.

“This reflects the Bureau’s continued adherence to the stringent quality management standards set by the ISO,” the finance chief said.

The DOF year-ender also noted that under Commissioner Bienvenido Rubio, the BOC had confiscated P84.36 billion worth of smuggled goods as of November 30, 2024.

Thru its monitoring efforts and post-evaluation of importers and brokers, the BOC also revoked the accreditation of 48 importers and customs brokers.

From January to November 2024, the BOC filed a total of 81 criminal complaints against suspected smugglers with seven criminal convictions.

The BOC also collected P220.77 billion in taxes under the Fuel Marking Program, (FMP), which translated to 18.23 billion liters marked as of end November.

Recto also lauded the BOC for its strengthened collaboration with stakeholders thru the Customs Industry Consultative and Advisory Council (CICAC) that was created only last February 2024.

The CICAC, Recto noted, serves as a vital bridge between the BOC and the business sector to address all issues related to Customs and industry matters.

As of November 30, the Central CICAC had grown to 59 member organizations while the district level expanded to 122 members.