Some functions of BIR, BOC may be privatized

The Department of Finance (DOF) is studying the possibility of privatizing certain functions of the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) to make the government’s two main tax agencies more efficient.

Finance Assistant Secretary Mark Dennis Y.C. Joven said late Friday that there is an ongoing study on how the government could tap the private sector to help the BIR and the Customs bureau in implementing some administrative functions.

“We're studying possibility, because legally speaking, if it's a sovereign function, we cannot privatize it, so we need to identify in the value chain those areas that could be privatized and whether doing so would make things more efficient,” Joven told reporters.

On the sidelines of Federation of Philippine Industries (FPI) anniversary last week, Joven, however, pointed out that the plan is still being studied, noting the DOF has to look at all legal implications of the proposed privatization.

“This is not final, what I’m saying is, we're studying whether or not some functions may be privatized legally. Assuming this is not allowed, we can just solicit help from these industry groups to at least help in ensuring that the reporting is correct,” Joven said.

On Friday, a study by the University of Asia and the Pacific (UA&P) on the prevalence and impact of illicit trade in the country showed that as much as

R900 billion worth of goods from eight critical industries were smuggled into the Philippines from 2011 to 2015.

Commissioned by Fight Illicit Trade (Fight IT), a movement under the FPI, the research identified petroleum, steel, resins, wood, cigarettes, sugar, palm oil, and automotive batteries as frequently smuggled products in the country.

Based on the study, the total value of smuggled goods from the eight industries reached R904.6 billion with massive illicit trade losses observed in petroleum, steel, cigarettes, resins and wood.

The economic impact of illicit trade on the gross domestic product is valued at R495.5 billion, the research showed.

“Illicit trade displaces domestic production