By Jose Cielito Reganit/PNA
MANILA — House Minority leader Danilo Suarez on Wednesday urged the Department of Finance (DOF) to fully implement the Lateral Attrition Law following reports that revenue collections under the Tax Reform for Acceleration and Inclusion (TRAIN) law was slightly below its targets for 2018.
Citing DOF data, the Quezon lawmaker noted that the TRAIN law generated PHP41.9 billion in revenues from January to September 2018, corresponding to 94.7 percent of the PHP44.3-billion target for the period.
“While the 94-percent collection looks promising, this is a good opportunity for the Finance Department to fully implement the Lateral Attrition law,” Suarez said in a press briefing.
The Lateral Attrition Law, or Republic Act 9335, was enacted in 2005 with the aim of boosting revenue through an incentive system where tax collectors who exceed expectations are given incentives accordingly, whereas those who fall behind their targets are imposed penalties.
“Targets met deserve rewards. While the argument can be made that collectors are doing their jobs they are paid to do, in reality, the temptation to succumb to corruption can be hard to resist,” Suarez said.
“This Lateral Attrition law acknowledges this. It provides incentives for efficient collections and arrests the spread of improper collection practices,” he added.
With the government expecting a higher revenue collection this year due to the implementation of the second tranche of the TRAIN law, the lawmaker said it is now more imperative for the DOF to properly implement RA 9335 to help the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) be consistent in achieving their collection targets for every year.
“Any tax reform sans proper implementation the lateral attrition act will not be able to achieve its full potential,” Suarez said.
“Revenue collection is a vital factor in determining the annual budget that will fund the government’s programs. Full revenue collection also ensures elimination of corrupt practices,” he said.
Under RA 9335, officials and employees of the BIR and BOC who exceed their respective revenue targets of the year would be given incentives in proportion to their relative contribution to the aggregate amount of the excess collection.
On the other hand, those who fail to meet their collection targets by at least 7.5 percent will be removed from office, subject to civil service laws, rules and regulations and in compliance with substantive and procedural due process.
