Odong urges Gloria to fire BIR Chief

For dismal incompetence and non-performance, Representative Aniceto G. Saludo, Jr. recently pushed for the immediate termination of the Bureau of Internal Revenue commissioner’s services.

Saludo, a leading member of the ruling party of the House of Representatives, said that BIR Chief Rene Bañez should be fired for failing miserably to meet his six-month collection targets.

The solon argued that the BIR under Commissioner Bañez, was almost P27 billion short of its target as of June this year.  Because of this, Saludo urged president Gloria Macapagal-Arroyo to sack Bañez, whom he described as a “dud, certified NPA – non-performing asset.”

According to Saludo, the BIR has committed to collect target revenue of P222.5 billion from January to June this year.  But citing reports of the Bureau of Treasury, Saludo said that actual collection for the six-month period reached only P195.62 billion or a shortfall of P26.9 billion.

Saludo’s call for the ouster of the BIR commissioner is the latest emanating form Congress.  Last month, House speaker Jose de Venecia led three other congressmen in asking the President to oust Bañez and institute a top-to-bottom revamp of the BIR because of its “dismal performance”.

Saludo said as per the collection program drawn up by Bañez and his deputies, the Large Taxpayers’ Service (LTS), the Large Taxpayers’ District Office (LTDO) and the Excise Tax Service (ETS) would collect 61 percent of the total BIR goal and the regional offices would collect the remaining 39 percent.

But according to the BIR Collection Performance Monitor for the period January-May, 2002, the LTS/LTDO/ETS collected only P92.1 billion, lower by P7.2 billion compared to the same period last year.  The same collection also fell short of the target of P116 billion by P23.9 billion, which is equivalent to a 20.62 percent deficit, Saludo said.

For the first six months of the year, Saludo said the BIR suffered shortages versus goal for five months.  It registered a slim surplus only once- in February.

Saludo said the President’s SONA is another indication why Bañez should be sacked.  “In her SONA last year, President Arroyo broke tradition to include, name and praise Bañez and his so-called “capabilities” to clean up the BIR and improve its performance.  However, the President’s SONA last Monday was embarrassingly silent on Bañez,” Saludo said.

“Bañez’s incompetence is inexcusable.  He has aggravated the financial and budgetary problems of the Arroyo administration which cannot afford a tax collection shortfall of nearly P27 billion now or for the remainder of the year,” Saludo said.

He said any additional shortfalls in collection by the yearend would cause serious economic and financial problems to the administration and the people in the light of the government’s huge budget deficit amounting to P120 billion as of June and which us expected to reach P130 billion by the end of the year.

(Released on August 28, 2002)