BIR to proceed with imposition of 5% campaign tax
By Michelle Orosa, ABS-CBN News | 11/16/2009 6:17 PM
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MANILA - The Bureau of Internal Revenue (BIR) said it is all systems go for the implementation of Regulation 8-2009 or the imposition of a 5% withholding tax on candidates' expenses for the 2010 elections.
The BIR and the Commission on Elections (Comelec) are expected to sign a memorandum of understanding regarding the measure tomorrow. But even if this does not push through, acting BIR Chief Joel Tan-Torres said the agency has the power to implement the regulation on its own.
"Just in case the MOA is not signed, the BIR can still proceed, as it is mandated to enforce these tax laws," Tan-Torres said.
There are signs of hesitation on the part of Comelec to sign the agreement, according to Comelec Director Atty. Ferdinand Rafanan, who said that such may be misinterpreted as harassment.
"This is taxation. Comelec has nothing to do with taxation. This might be misinterpreted and twisted by suppliers as harassment, especially those who are hiding expenses," Rafanan said.
Despite this, Tan-Torres is pushing for the implementation of the 5% campaign tax, saying that this is part of the BIR's efforts to increase collections. The measure is seen to generate as much as P1.4 billion in additional revenues, he said.
Aside from the 5% campaign tax, the BIR has also launched "SanTAX Claus" which aims to monitor Christmas bazaars and make sure that they pay the right taxes and issue receipts to customers.
At present, taxes collected by the BIR account for three-fourths of the government's total tax revenues.
The BIR's poor collection has bloated the country's budget deficit, which is widely seen to exceed the P250-billion ceiling for 2009.
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