MANILA - The Bureau of Internal Revenue expressed its support to the Marcos administration’s plan to amend the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.

On the sidelines of the tax bureau’s 119th anniversary celebration, BIR Commissioner Romeo Lumagui, Jr. referenced a comment by the World Bank that the Philippines is giving “too much” tax incentives.

“‘Yung VAT gap naman, it’s not just ghost receipts. It’s also about giving too much incentives. ‘Yong CREATE, ang daming mga incentives. We’re trying to regulate it. Ang comment sa atin ng World Bank, we have too much incentives,” Lumagui said.

The government lost a total deficiency value added tax of P7.92 billion from ghost receipts sold to companies.

BIR has intensified its crackdown against companies using this scheme which is expected to boost revenue collection.

But aside from the problem, Lumagui said the bureau will support amendments to the CREATE Law as proposed by President Ferdinand Marcos, Jr.

“Kami naman sa BIR, kung ano man ang mapagdesisyunan nila that is needed for our country. Kasi iba ang iniisip nila eh. More on to attract more investors. We’ll fully support kung ano man ang gusto nila riyan,” Lumaggui said.

“It’s a policy issue at kung sasabihinng pangulo at ng Congress, susuportahan natin ‘yan,” Lumagui said.

Marcos told investors in the Asia-Pacific Economic Cooperation Business Advisory Council held in Cebu that his administration is ready to consider amendments to the CREATE Law and will be introducing amendments to it.

Some investors raised issues on the imposition of 12 percent value added tax for indirect exporters, VAT refund claims, and problems on ease of doing business.

Lumagui said the BIR is prioritizing its digital transformation in hopes to solve corruption issues and to promote ease of doing business.

Finance Secretary Benjamin Diokno said he has yet to know about the proposed amendment to the CREATE Law.

“I don’t know kung anong provision ang gusto niya i-amend… Wala ako sa Cebu eh… I want to see kung ano ‘yong problem. Lahat naman ng amendment, you have to review it,” Diokno said.

BIR is also ramping up its excise tax collections as it registered a shortfall of 11 to 20% for the first half of 2023.

“Malaki ang hindi pa natin nakokolekta diyan kaya patuloy ang paghahabol natin sa illicit traders,” Lumagui said.

“Susubukan nating makuha pa ;yan kaya ang hahabulin nain ngayno, ‘yong mga hindi pa bayad ang excise tax sa sugar and sweetened beverages, sa sigarilyo, at dito sa vape products,” Lumagui added.

BIR’s collection target for 2023 has been upped to P2.639 trillion.

Lumagui said the bureau is on track to reach the target as it has collected P1.219 trillion for the first half of 2023.

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