Press Release
May 25, 2009

Press statement of Senator Loren Legarda

ON BIR UNDERCOLLECTIONS

The admission by the Bureau of Internal Revenue that it had suffered huge "losses" because of misapplication of the Optional Standard Deductions by business enterprises and professionals is alarming.

Because of the global financial crisis, our country is in urgent need of more revenues that could be plowed back to a fiscal stimulus package. We therefore need more efficiency and integrity on the part of our revenue collectors in the BIR and the Bureau of Customs to collect all taxes due the government to be able to service the needs of our people, plus revive our lagging economy.

The BIR should go after tax evaders with the full force of the law. The revenue shortage could not just be due to "errors" of business enterprises and professionals, but they could be intentional to evade payment of taxes.

The BIR must show that it will not tolerate tax evasion by filing criminal charges against the big tax evaders.

ON FISCAL STIMULUS

The government must have more imagination and drive in coping with the world financial crisis that has resulted in the closing of factories and businesses and losses of thousands of jobs in our country. According to press reports, our country's economic growth may decline to just 1.5 percent this year due to the government's "underspending".

In short the fiscal stimulus package inserted in our appropriations act appears not to be working. The administration must explain how and why this is happening, when the previous growth figures predicted by economists for our country has been from 3.5 to 4 percent. Perhaps the administration has so focused its attention to politicking and to strategies to prolong its power after the 2010 elections it can give no serious thought to revitalizing the economy.

The billions appropriated to the fiscal stimulus could be used to build infrastructures like roads, bridges, seaports and airports, school buildings and hospitals or to provide seed funds for industrial and agricultural projects that could step up production and provide more employment. Is the administration scrimping for "savings" to be used next year during the election campaign period?

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