BIR Gets $ 11-M World Bank Loan to Improve Tax Collection

Manila Bulletin, March 15, 2007 | Go to article overview
Save to active project

BIR Gets $ 11-M World Bank Loan to Improve Tax Collection


The World Bank's Board of Executive Directors yesterday approved a US$ 11-million loan to support the Bureau of Internal Revenues' (BIR) program that will improve efficiency of tax administration.

The National Program Support for Tax Administration Reform (NPSTAR) will improve the registration process, clean-up taxpayer registry, improve taxpayer e-services, e-filing and e-payment, and increase collection of arrears.

The loan will also support improvements in governance and management of the BIR. Overall, this assistance will help improve taxpayer compliance, tax enforcement and control, and enhance the BIR's capacity to undertake a sustainable and long-term reform program.

Department of Finance (DoF) Secretary Margarito Teves said, "The improvement in tax administration will help the government generate additional revenues that are needed to increase spending in needed social services such as health and education, and vital infrastructure such as roads and bridges. By plugging the leakages in the tax system, we are also increasing the equity of the tax burden."

Revenue administration in the Philippines is characterized by an underlying weak community culture towards paying tax. Government data show that there is a disproportionate collection of income tax between employed and self-employed individuals.

The DoF estimates that the difference between actual collected taxes and the potential tax due from self-employed individuals is about 70 percent while the gap for employed individuals is only 7 percent. The National Tax Research Center (NTRC) estimates that almost P30 billion in taxes from the self-employed and professionals were not collected on an annual basis in the last six years.

Joachim von Amsberg, World Bank Country Director for the Philippines, says that fiscal reforms undertaken thus far are essential for restoring the health of public finances and reversing the compression of public expenditures for basic public services.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

BIR Gets $ 11-M World Bank Loan to Improve Tax Collection
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?