BIR seeks exemption from salary standardization

THE BUREAU of Internal Revenue (BIR) has submitted a proposal to Congress seeking the bureau’s exemption from the Salary Standardization Law, as a measure to help address the agency’s underperformance against revenue targets.

BIR Deputy Commissioner Jesus Clint O. Aranas said that he submitted the proposal to House Speaker Pantaleon D. Alvarez.

In a copy acquired by BusinessWorld, the proposal states that the BIR shall be “authorized to formulate its own Compensation and Position Classification System.”

It states that the compensation for BIR personnel shall be “comparable with those in the private sector doing comparable work.”

BIR Commissioner Caesar R. Dulay said that he “fully supports the proposal,” in a mobile phone reply yesterday.

The proposal addresses the bureau’s need to professionalize its staff, and retain competent workers.

Mr. Aranas said that salaries play a major role on the fight against corruption in the bureau.

“We are very prone to ‘grafty’ situations. We have to recognize that the only way to hire the best of the best is to increase our salaries,” he said.

The BIR reported that it has a little under 10,000 employees, with 11,000 vacancies.

Mr. Aranas attributed the staffing problems to the unattractive salary package offered by the BIR.

“The moment they see the salary grade we offer them as opposed to the salary grades offered by other government agencies like the Public Attorney’s Office and the Insurance Commission, definitely the BIR is the last priority,” he said.

“This is reflective of our collection effort. The collection effort is very high, considering that we are undermanned, and yet the pressure to collect revenue for the government to operate is upon us,” said Mr. Aranas.

Pampanga Rep. Ma. Gloria M. Macapagal- Arroyo recently filed a bill which seeks to replace the BIR with a National Revenue Agency ( NRA), in an effort to professionalize the tax collection agency, and reduce corruption opportunities.

In a text message to BusinessWorld, House Ways and Means Committee Chairperson Dakila Carlo E. Cua said that the proposals of BIR and Ms. Arroyo “seem sound at face value.”

Moreover, Mr. Dulay said that the agency has delegated regional directors to take charge of hiring examiners for their respective districts, to reduce the congestion of employment applications in its main off ice.

“We have a lot of applications. We don’t call it a problem. So we devolve the power to hire out in the provinces. This is a small way of contributing to reducing unemployment rate in the country,” Mr. Dulay said in a news conference yesterday.

The Department of Finance has yet to take a position regarding the proposals.

Looking forward, Commissioner Dulay said that the BIR is bullish on its outlook for 2017. The BIR is tasked to collect P1.829 trillion this year. —