MANILA, Nov 2 — The head of the Philippines’ Bureau of Internal Revenue (BIR), which brings in most of the government’s revenues, has resigned over the agency’s failure to meet its targets, the president’s office said today.
Press Secretary Cerge Remonde told reporters the president will announce a replacement tomorrow for the head of the bureau that brings in two thirds of government revenues.
Sixto Esquivias took the helm in November 2008, making him the fifth tax chief to be appointed by President Gloria Macapagal Arroyo since she took office in 2001.
“The president has accepted his resignation,” Executive Secretary Eduardo Ermita said in a statement. “He has not performed well and he said he takes responsibility for it. He said the president should be given the chance to make changes as she sees best.”
The government’s budget is already under pressure with widespread expectations its deficit will spread beyond the record target of 250 billion pesos, or 3.2 per cent of GDP.
Tax collecting in the Philippines has been dogged for years by widespread tax evasion, corruption and inefficient tax administration. The difficulty of the task was made worse this year by the global economic downturn.
The bureau collected 557 billion pesos (RM40 billion) between January and September and needs to bring in more than 40 per cent of that amount in the last quarter alone to meet its 2009 revenue goal.
Officials had previously acknowledged that the full-year target would be difficult to reach because of the downturn. — Reuters
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