Drilon Urges Congress: Review Tax System

Article excerpt

Senate President Franklin M. Drilon yesterday said he would urge Congress,when it reopens in July, to give priority to a review of tax laws and tax administration policies to improve revenue collection and solve the budgetary deficit.

It is time that we subject our tax laws and tax administration system to a review in view of the chronic failure of government revenue to meet budgetary targets, said Drilon. We want to know, what is responsible for the revenue deficit the tax laws or the implementation of the revenues laws by the administrative agencies, or both?Drilon explained that the soundness of the budget has a direct impact on economic growth. When the revenue is not sufficient to finance the budget, government has to borrow, and this crimps future government spending, as more revenue collections are allocated to debt payments, leaving little for infrastructure, economic and social development, not to mention for government operations.Drilon made the observation as some officials of the Bureau of Internal Revenue were reported to be clamoring for stiffer penalties for tax evaders, claiming that the present penalties are too light. However, Drilon warned that the tax authorities might just be giving an excuse for their own failure to enforce the tax laws strictly. …