DoF to review BIR salary standardization exemption

THE FINANCE department plans to review a measure exempting the Bureau of Internal Revenue (BIR) from the prescribed salary levels for public employees after the implementation of a merit-based rewards and penalties law for the government’s revenue collecting bureaus.

Finance Secretary Carlos G. Dominguez III said that the Department of Finance ( DoF) will implement the so-called Lateral Attrition Law before starting talks on BIR’s exemption under the Salary Standardization Law (SSL).

“First we want to implement the Attrition Law,” Mr. Dominguez told BusinessWorld in a text message.

Republic Act 9335, or the Lateral Attrition Law, aims to encourage the BIR and the Bureau of Customs (BoC) to exceed their monthly revenue targets by giving rewards or penalties to their employees, depending on their performance. The DoF said it plans to discuss the law with stakeholders prior to its implementation.

Tax Management Association of the Philippines ( TMAP) President Benedict R. Tugonon, for his part, said that the proposal on BIR’s exemption from the SSL remains stuck in legislation, and should now be acted upon in Congress.

“That has long been overdue. They should be exempted from standardization and their compensation should be higher,” Mr. Tugonon told BusinessWorld in a phone interview.

Senate Ways and Means Committee Chairperson Senator Juan Edgardo M. Angara — who previously backed the measure — gave no response when asked if his committee will revisit the proposal.

BIR’s previous bid to legislate its exemption from the SSL was made during the term of Commissioner Kim S. Henares, with the intent to retain highly skilled workers, and also deter employees from engaging in corrupt practices.

BIR Spokesperson Marissa O. Cabreros told BusinessWorld recently that the bureau welcomes legislation supporting the exemption, as it would help the bureau be competitive in its salary packages for professionals in high demand like lawyers and accountants.

TMAP’s Mr. Tugonon said that the attrition law and higher salaries for BIR employees will help the bureau render better tax audits, and attain their revenue goals.

“We need to pay them well and we should expect professional and good quality service. Remember, we are dealing with money. You don’t want to tempt them because of [financial] difficulties… You want to remove that concern,” he said.

“In my opinion, we should not treat them different from how we treat BSP (Bangko Sentral ng Pilipinas). They deserve to be paid well,” Mr. Tugonon added.

The law provides a unitary salary rate for government employees, but currently exempts the BSP and a number of other agencies. —