Standing from left: Ma. Luisa I. Belen, BIR Assistant Commissioner for Assessment Service; Clavelina S. Nakar, BIR Assistant Commissioner for Collections Service; Maridur V. Rosario, BIR Deputy Commissioner for Operations Group; Tammy Lipana, PCCI Tax Committee Member; Ma. Alegria Sibal-Limjoco, PCCI Honorary President and Chair for Membership and SDG; Sergio Ortiz-Luis, PCCI Honorary Chairman and Treasurer; BIR Commissioner Atty. Romeo D. Lumagui, Jr.; George T. Barcelon, PCCI President; Jethro M. Sabariaga, BIR Assistant Commissioner for Large Taxpayers Service; Engr. Enunina V. Mangio, PCCI Vice President for Regional Affairs; Atty. Carlos T. Carado II, PCCI Taxation Committee Chair; Rhuby Conel, PCCI Assistant Secretary-General for Advocacy, Research, and Corporate Communications; Elisha Sanchez, PCCI Policy and Program Officer; Merryl Abaño, PCCI Policy and Program Officer. 

 

On February 3, 2023, members of the Executive Committee and officers of the Taxation Committee of PCCI paid Commissioner Romeo D. Lumagui, Jr. of the Bureau of Internal Revenue a courtesy visit to discuss various taxation issues and concerns. 

 

Taxation Committee Chair, Atty. Carlos Carado stated PCCI’s support for the following pending revenue-related bills: 

• Comprehensive Tax Reform Program Package 3: Real Property Valuation Reform and Package 4: Passive Income and Financial Intermediary Taxation Act

• Capital Market Development Act

• Ease of Paying Taxes Bill

• Imposing Value-added Tax on Digital Transactions in the Philippines

• Taxpayers Bill of Rights

 

Atty. Carado likewise raised the issues on the inclusion of phone/internet allowance granted to employees in the list of de minimis benefits and the adjustments on the amounts of these non-taxable fringe benefits, 13th-month pay, and other benefits.  The fringe benefit rules needed to be updated in consideration of the pandemic.

 

Commissioner Lumagui responded that the BIR will review the proposal. 

 

The PCCI officials also raised the VAT on export sales, specifically BIR Memorandum Circular 24-2022.  Mr. Barcelon noted that this policy has an impact on a number of businesses in the local supply chain and expressed hope that the BIR will review it in collaboration with the relevant government agencies.

 

Another tax issue that was presented was the frequency of yearly tax audits, which place a significant burden on MSMEs.

 

To assist taxpayers in correctly and efficiently complying with BIR requirements, Commissioner Lumagui responded that BIR will be recalibrating its digital transformation program.

 

To further strengthen PCCI and BIR’s partnership, Commissioner Lumagui approved the revival of the PCCI-BIR joint tax committee.  Created during the time of former President Gloria Macapagal Arroyo, the Joint BIR-PCCI Technical Working Group is a mechanism for consultation where concerns about tax administration were discussed and which also assisted the government in gaining the buy-in of the business community on tax regulations and policies.

 

Commissioner Lumagui positively responded to the invitation of the PCCI to its General Membership Meeting in March to present his plans and programs for the BIR, as well as webinars on taxation the PCCI is set to organize preparatory to the annual filing of Income Tax Returns.  --- Elisha Sanchez

​

​

​