Senate Deputy Majority Leader JV Ejercito expressed optimism that recent reforms in the Bureau of Internal Revenue’s (BIR) issuance of Letters of Authority (LOA) will strengthen government revenue collection.
“We badly need revenues right now. We are already facing around a ₱200-billion shortfall early this year. That is a heavy burden on our fiscal position,” Ejercito said during a Senate Blue Ribbon Committee hearing on alleged LOA misuse.
He welcomed the halting of the old LOA system and the introduction of safeguards, noting that the changes should curb abuse and improve tax collection efficiency.
Ejercito also called for a fair audit process to protect local businesses and foreign investors, warning that investor confidence could shift to other ASEAN countries if reforms are not properly enforced.
“We really need to fix this because we’re losing investments… We really have to fix our system and show transparency,” he said.
BIR Commissioner Charlito Martin Mendoza added that reforms under Revenue Memorandum Circulars 5-2024 and 38-2024 provide clear guidance on taxing cross-border services and foreign companies, emphasizing that assessments must be based on clearly specified facts.