The MANAGEMENT ASSOCIATION OF THE PHILIPPINES (MAP) commends the Department of Finance (DOF) for the anti-corruption steps it has already taken and for enhancing the capability of the Bureau of Customs (BOC) to step up counter-corruption initiatives to address rampant smuggling of many products like oil and motor vehicles.
A smuggling-free Philippines will not only improve the country’s standing in the world competitiveness ranking but will also address the revenue gap and provide much needed funds for education, health and infrastructure. Smuggling of petroleum products alone is conservatively estimated to result in a revenue loss of at least P30 billion per year.
We therefore encourage the DOF and the BOC to aggressively pursue their efforts with maximum speed and intensity as plugging this continuing plunder would go a long way in addressing the country’s fiscal problems.
We encourage the DOF to do the following:
1. Aggressively pursue its campaign to prosecute, convict and jail major tax evaders and smugglers.
2. Quickly come out with results of all pending investigations and audit.
3. Immediately file cases as soon as there are findings of tax evasion, smuggling and corruption.
4. Continue filing cases against those who violate the laws as part of its Revenue Integrity
Protection Service (RIPS).
5. Observe transparency in giving tax amnesty for those importers who voluntarily approach BOC
for their undervalued products by publishing clear tax amnesty guidelines that are approved by Congress.
6. Speedily conduct an audit on the value of products declared by the importers and the tax
payments to ensure that government always collects the right taxes and duties.
7. Improve and strengthen the import accreditation process so that those who actually do not
pay the right taxes and those with pending cases will no longer be able to import any
product.
8. Establish a single efficient point of contact that will enable importers to track electronically
where their documents or cargoes are.
9. Immediately release audit findings to be able to collect the right taxes.
We wish the DOF huge success in bringing the country’s tax effort to at least 18% of GDP, and the revenue effort to more than 22% of GDP, to enable the government to continue investing in the infrastructure for commerce and social services.
We encourage the President to certify as urgent the pending bills on anti-smuggling in Congress in line with his “Kung walang corrupt, walang mahirap”battlecry.
We strongly urge the business community, especially the members of MAP, to sign the Integrity Pledge and to lead by example in the fight against corruption by managing their businesses ethically and with integrity, paying the right taxes, taking care of their stakeholders and the environment, and not tolerating bribery.
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To view the original statement by the Management Association of the Philippines published on Feb. 24, 2011, click herehere.
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