Economics to Live by; Lateral Attrition
Byline: Dante V. Sy
In an effort to enhance morale, efficiency, integrity, credibility, responsiveness and optimization of the revenue-generating capacity of the government, particularly in its two premier revenue collecting agencies (the Bureau of Internal Revenue and Bureau of Customs), there is a pending proposal to institutionalize a special reward system for exemplary service and a system of lateral attrition in these agencies.
As defined in the proposal, lateral attrition is the transfer in post or assignment and/or separation from government service, in accordance with civil service laws, rules and regulations, of internal revenue or Customs officials/officers/employees, who do not meet their respective revenue or collection goals for the year with all due consideration being taken, such as the factors causing the failure to meet revenue goals, evidene of graft and corruption, among others.
The resort to lateral attrition cannot be faulted. In the light of the countrys declining tax effort, which is attributed to, among others, the inefficiencies or deficiencies in tax administration and the observation of the Transparency International (an international organization committed to curb corruption through international and national integrity systems) that for a certain amount of tax collection, only a portion of it goes to the government and the other portions to corruption and defects in collection; there is an urgent need to set up a mechanism to deal with these issues in an objective and systematic manner. …