Random Image Display on Page Reload

[Vantage Point] BIR milestone: Surpassing target for first time in 2 decades

[Vantage Point] BIR milestone: Surpassing target for first time in 2 decades
As Commissioner Romeo Lumagui Jr. and the BIR have shown, a transformation in public service delivery must be initiated by a paradigm shift

Public institutions are expected to serve as bastions of efficiency, equity, and accountability. But Filipinos have always grappled with the disconnect between what should be and what is. Government agencies sadly prioritize rigid processes over the very people they are meant to serve. This procedural myopia not only alienates citizens, but also undermines the effectiveness of public service.

In an exclusive interview, Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. offers a path to much-needed change: “To reclaim trust and relevance, governments must reorient their focus — from imposing compliance through fear to fostering voluntary cooperation by meeting the public’s needs with convenience and empathy.”

Such has been his mindset in running the agency. He credits this approach in BIR’s success in surpassing its collection target for the first time in 20 years (not counting the pandemic year 2020).

Lumagui, in fact, has a specific term for the BIR under his watch: a “taxpayer-oriented agency.” This has been hailed by many as a welcome relief from the typical bureaucratic inflexibility that dominated the BIR and other government agencies since time immemorial.

Bureaucracy, at its core, is designed to ensure fairness and consistency. However, when processes overshadow purpose, the result is a system that values adherence to rules over meaningful outcomes.

“Our taxpayer-oriented approach is rooted on good governance and four specific pillars: strong and assertive enforcement activities; excellent taxpayer service; integrity and professionalism within the institution and among its employees, and a robust push for digitalization,” Lumagui explained. “Thankfully, last year’s collection numbers show that if government agencies were to improve their services, processes, and programs, our countrymen will do the right thing and pay their proper share of taxes,” he added.

Milestone collection

The numbers are indeed impressive. The Development Budget Coordination Committee (DBCC) challenged the BIR in March 2024 to collect P2.848 trillion for the year. Although the exact figures will only be finalized next month, the tax agency has already confirmed that they have met the target. By the time all computations are made, the final tally is expected to be comfortably past P2.848 trillion.

Moreover, the BIR accomplished this despite the country’s gross domestic product (GDP) growing by a weaker-than-expected 5.2% in the third quarter, slowing from the revised 6.4% growth posted in the second quarter and 6% a year earlier.

Where customer-centric strategies have become the norm, other government agencies can draw valuable lessons from the BIR’s example. Upon his appointment as commissioner, Lumagui made a determined effort to understand the taxpayers’ needs and streamline interactions between the agency and the public to enhance satisfaction. “After all, hardworking Filipinos should not be viewed as civilians to be regulated, but as fellow stakeholders to be engaged,” he said.

Successive successes

This perspective paid dividends early on. The BIR achieved several notable milestones. These include 100% nationwide ISO (International Organization for Standardization) certification for various frontline processes; the Civil Service Commission’s Program to Institutionalize Meritocracy and Excellence in Human Resource Management (CSC PRIME-HRM) Maturity Level II Accreditation, and the National Privacy Commission (NPC) Seal of Registration in the previous year.

While Lumagui believes that the government should focus on empowering individuals with clear information, accessible resources, and proactive support to improve compliance rates and public trust, this is by no means an indication of weak enforcement.

On the contrary, it was under his command that the BIR finally struck a crippling blow to the institutional problem of ghost receipts. His Run After Fake Transactions (RAFT) task force took the fight straight to the syndicates, and literally kicked down doors and barged into illegal headquarters (often led by Lumagui himself). As of last count, their efforts have led to more than 40 cases of tax evasion filed by the Department of Justice (DOJ) against both buyers and sellers of fake receipts.

Guiding this boots-on-the-ground effort is a sophisticated tracking system using data analytics and mathematics. The agency actually partnered with the Ateneo de Manila University’s Math Department to employ an algorithm that can detect ghost receipts with remarkable accuracy.

As Lumagui and the BIR have shown, a transformation in public service delivery must be initiated by a paradigm shift. This involves rethinking priorities, redesigning processes, applying the latest technology, and retraining personnel to adopt a people-first approach. – Rappler.com


Val A. Villanueva is a veteran business journalist. He was a former business editor of the Philippine Star and the Gokongwei-owned Manila Times. For comments, suggestions email him at mvala.v@gmail.com.

*****
Credit belongs to : www.rappler.com

Check Also

No love for rogue cops: Marbil says PNP won’t tolerate officers tagged in dubious Taguig search

(Courtesy of Taguig City Police / NCRPO) Philippine National Police (PNP) Chief, General Rommel Francisco …