DUMAGUETE CITY—The Department of Finance plans to review the “Oplan Kandado” tax measures enforced by the Bureau of Internal Revenue (BIR).

Finance Secretary Margarito Teves said the revenue measure might not be as effective as perceived.

He said that “Oplan Kandado” has to be reviewed carefully amid complaints raised about its implementation. It involves the closure of firms not paying proper taxes.

Instilling fear in the enforcement of tax measures was important, but this had to be analyzed carefully, Teves said.

He said the tax measure should be location-specific and client-specific and that all remedies are exhausted before closing an erring business establishment.

Teves said he will call for a meeting with concerned agencies as soon as he got back to Manila to make an assessment and get feedback from both the taxpayers and the people regarding the issue.

Teves, who hails from Negros Oriental, was guest of honor and speaker during the local observance of the 111th Independence Day at the Quezon Park on Friday.

Tax bills backed

On the administration’s tax-enhancement measures, Sen. Aquilino Pimentel Jr. said he supports higher taxes for alcohol and tobacco.

“I also support putting picture warnings on ill effects of smoking on packages of cigarettes,” Pimentel said in a statement.

He said if explained carefully and reasonably, he would also support the rationalization of fiscal incentives or providing tax exemptions.

At the same time, he supported the simplified net-income taxation system for professionals and self-employed to generate additional revenues and narrow down the budget deficit.

However, Sen. Mar Roxas II thinks President Arroyo must first stop graft and corruption in her administration before any new taxes is approved by Congress.

The public would no longer be keen on paying more taxes to the government that would only reduce their monthly income, especially at this time of extreme economic crisis.

The Visayan senator said President Arroyo should instead concentrate on stomping out graft and corruption in her government, both in the income and expense side.

Economic managers have projected this year’s budget deficit at P250 billion by year-end, saying revenue-collection agencies have failed to meet their targets due to shortfalls in the value-added tax collections.