DOF Expects Implementation of Tax-Related Digitization Projects in the Philippines

The Department of Finance (DOF) is expecting a nationwide implementation of the fuel marking program along with several digitization projects to improve tax administration in the Philippines in 2021. 

The measure aims to utilize new technologies in the fight against corruption in the government sector and boost tax compliance in the country. 

According to DOF’s Revenue Operations Group (ROG) report, it expects the fuel marking program, including its enforcement activities to fight against smuggling, to be fully operational nationwide by the first quarter of 2021. 

As of January 6, the volume of fuel marked under the program tallied around 17.73 billion liters. Moreover, the taxes and duties gathered by the Bureau of Customs (BOC) under the program totaled ₱149.36 billion since its implementation in September 2019. 

Meanwhile, the Bureau of Internal Revenue (BIR) collected excise taxes worth ₱23.94 billion under the same program from December 2019 to December 2020. 

ROG stated that they are targeting to complete the electronic tax exemption system (TES) of DOF’s Revenue Office (RO) by the first quarter to allow qualified importers to register, file, and track their online duty and tax-exemption applications. 

In 2020, the RO processed 16,650 tax exemption applications, translating into ₱12.5 billion in foregone revenues. 

Finance Undersecretary Antonette Tionko noted that these applications include 2,520 applications under the Bayanihan To Heal as One Act (Bayanihan 1) and the Bayanihan to Recover as One Act (Bayanihan 2). 

Additionally, Tionko announced that the Online Registration and Update System (ORUS) of the BIR is expected to be operational by August. 

This front-end interfacing system allows new businesses and individuals to register online as well as update their taxpayer details.