More bad news from the Dept of Lowered Expectations
THE Department of Finance (DoF) has reduced the government’s target for revenue
of the Comprehensive Tax Reform Program (CTRP) by nearly 30 percent, after failing to implement
- ect the government will realize a
the tax reform measure this year -
- supposed to be awarded to a contractor and implemented next year, while the e-invoice system is planned for implementation
- out at least one weird public disclosure from the DoF, and is an implicit admittance of failure, and its substance, stripped of the interpretive tap-dance of bureaucratic rhetoric, is basically this: The presumption behind the
revenue” target was that part of that amount would be generated
which taxes can be evaded in the distribution of fuel or in retail
- ing scheme and the e- invoice program, were devised in or-
implementation
of both has - taxes that would be collected if everyone concerned was paying
-
records of the taxes they avoid, even indirectly, so the estimated
-
- strating the same shortcoming in
as every other government this country has ever had: The strange belief that the only appropriate solution to a performance failure in bureaucratic processes is not to address the performance failure directly, but to create an entirely is of course completely inane;
Third, having sold Congress on the necessity of new processes as the only or at least the preferred way to solve the problem of rev-
to implement them, undermin-
case of the e-invoice program, a less than speedy implementation could be forgiven because of its complexity, although in that case the DoF should not have counted on its positive contribution so
delay can be attributed to simple bureaucratic dithering for which
- tion of a traceable organic compound to fuel before it leaves
shipment of
fuel can then be traced with the use of simple detection equipment, which prevents various forms of fraud such as diluting the fuel, delivering it to a different destination, or substituting it with a different
widely- used system offered by
vendors, and there is simply no reason why the procurement
The amount of revenue that could have been recovered by imple-
might be uncertain, but whatever that amount really is, the blame for its not being recovered so far
To be fair, the e-invoice system is a much more challenging prop-
point-of-sale systems throughout the country to be connected to the Bureau of Internal Revenue ( BIR), so that transactions are
- sides the process advantages for both the BIR and businesses in digitizing a substantial part of the tax monitoring and collec-
taxes through under- reporting
Implementing the program is a huge technical leap for the
which is why the implementation
On that schedule, the program should be rolled out by mid2020, and so far it appears to puzzling why the DoF even counted any contribution from the e-invoice system in its revenue
as with the non-implementation
presumed foregone revenue thus becomes the fault of the DoF, and not some external extenuating