Finance Secretary Ralph Recto admitted that the Bureau of Internal Revenue (BIR) has observed a slowdown in the growth rate of tax collections, which he attributed to corruption and the growing public disillusionment with the government.
During the Senate Committee on Finance hearing on Tuesday, October 14, Senator Win Gatchalian questioned Recto about whether the recent public frustration and protests against corruption in government have affected taxpayers’ willingness to pay their dues.
“Mayroon bang epekto on taxpayer payments? Do you think it will affect people paying their taxes dahil maraming nadidismaya, madaming mga rally? Do you see any slow down in terms of paying taxes?” the senator asked.
Recto agreed, confirming that the BIR has started to feel the impact of the issue.
“Yes. nararamdaman na ng BIR ‘yan,” Recto said. “Medyo ‘yong growth rate ng collection nila, nababawasan ng konti. But so far, manageable naman lahat.”
Gatchalian then stressed the importance of maintaining public confidence in the government, warning that widespread distrust could further discourage tax compliance.
“‘Yan din ang ayaw nating mangyari, ‘yong mawalan ng kumpiyansa ang taumbayan sa gobyerno. And the offshoot there is ‘yong iba magwi-withhold muna ng payments or ‘yong iba siguro baka magkaroon ng many times sa pag-iisipan bago magbayad,” the senator said.
The lawmaker also commended the Department of Finance for its firm stance against corruption.
“That’s why it’s important to fight corruption […] and I commend the DOF for stating that the DOF will never tolerate corruption,” Gatchalian concluded.