MANILA, Philippines - The government will be shifting to cash refunds for taxpayers, instead of tax credit certificates (TCCs) that are prone to irregularities.
Budget Secretary Florencio Abad said some P8.3 billion has been earmarked in the 2012 budget to cover for cash refunds.
“The study of Japan International Cooperation Agency (JICA) affirms the findings of the Commission on Audit (COA) that TCCs are susceptible to irregularities in utilization and it is difficult to monitor,” he said.
“Cash refunds, on the other hand, are less burdensome in terms of accounting and bookkeeping. Moreover, it promotes transparency that will have a positive impact on the country’s investment climate,” he added.
The P8.3 billion budget actually covers refunds up to 2015. TCCs for 2012, worth P709 million, will also be monetized, he said.
He said the cash refund will be sourced from the Bureau of Internal Revenue collections.
Abad stressed this will not affect budget deficit goals.