THE Department of Finance (DoF) said it and the Bangsamoro Government have started drafting the region’s tax administration plan to help the latter improve its revenue generation.
In its Sept. 3 meeting, the Intergovernmental Fiscal Policy Board (IFPB) approved the creation of an Operational Working Group to lead the drafting of the Tax Administration Transition Plan.
This plan aims to ensure efficient tax collection system for Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), which would be necessary to generate funds for the region’s growth and development projects.
Under Republic Act No. 11054 or the Bangsamoro Organic Law, BARMM enjoys fiscal autonomy and is empowered to generate its own revenue.
“BARMM holds a unique advantage by building a comprehensive digital system as they are starting from scratch. They can learn and skip all the mistakes that the National Government encountered. They can go straight to digital,” Finance Secretary Ralph G. Recto was quoted as saying.
The IFPB is co-chaired by Mr. Recto and Bangsamoro Minister of Finance, Budget and Management Ubaida C. Pacasem.
The DoF’s Revenue Operations Group, which heads the tax study group for the BARMM, is leading the discussions on the Tax Administration Transition Plan, it said.
The plan covers the transition of tax administration functions from the Bureau of Internal Revenue (BIR) to the Bangsamoro Revenue Office. It also includes the sharing of the BIR’s registration and other systems.
To date, the group reported that it has completed 80% of its deliverables under RA 11054, the DoF said.
This includes the creation of guidelines on the share of the Bangsamoro Government in national taxes, fees and charges collected in the BARMM; and the implementing rules and regulations on the payment of national internal revenue taxes by corporations, partnerships or firms. — Beatriz Marie D. Cruz