ROXAS: NEW BIR CHIEF MUST PURSUE TAX SYSTEM REFORMS

Liberal Party President Senator Mar Roxas today challenged the next commissioner of the Bureau of Internal Revenue (BIR) to pursue tax reforms and allow for maximum collection of revenues for programs that truly benefit the people.

Roxas said the new leadership should have an "iron first and political will" that would improve on the administration of BIR Commissioner Lilian Hefti, whose resignation was confirmed by Malacañang on Friday.

He also urged the bureau to look at improving collections from present non-taxpayers, like many professionals and self-employed individuals, rather than continuing to "bleed our workers dry."

"We need someone at the helm who could maximize government's tax collection efforts. Ngayong mayroon tayong hinaharap na financial tsunami dahil sa financial crisis sa Amerika, kailangang maging maayos ang pangongolekta natin ng mga taxes para hindi lumobo ang ating budget deficit," he also said.

The BIR had earlier conceded that it might fall short of its 2008 collection target of P854 billion, due to the worldwide economic slowdown.

But while Roxas pushed for rigid tax collection efforts, he warned the BIR against unfair collections to meet its targets, particularly the bureau's interpretation of the coverage of Republic Act No. 9504, or the law which exempts minimum wage earners from income taxes and increases the personal exemptions of other workers.

The BIR has so far insisted on providing the tax exemption for income of minimum wage earners only from July onwards, and to exclude minimum wage earners who get extra allowances from their employers.

"I agree that we should maximize our collection efforts but there is no need to bleed the citizenry dry just to meet targets. Huwag na nating dagdagan pa ang paghihirap ng ating mga kababayan," he said.

Roxas has been pushing for the full implementation of RA 9504, to cover the months of January to June of 2008, and has filed a petition at the Supreme Court for this, together with the Trade Union Congress of the Philippines.