DOF readies tax administration plan for Bangsamoro government

The Department of Finance (DOF) is preparing the tax administration transition plan for the Bangsamoro government which includes the establishment of a digitalized tax system to streamline revenue payment and collection processes in the region. DOF logo phot file/INQUIRER FILES

The Department of Finance (DOF) is preparing the tax administration transition plan for the Bangsamoro government which includes the establishment of a digitalized tax system to streamline revenue payment and collection processes in the region.

The Intergovernmental Fiscal Policy Board (IFPB), co-chaired by Finance Secretary Ralph Recto and Bangsamoro government Minister of Finance, Budget and Management Ubaida Pacasem, approved on September 3 the Operational Working Group who will lead the crafting of the tax administration transition plan.

“In line with our ‘Taxpayer First’ policy, this plan ensures a seamless and efficient transition for all taxpayers in Bangsamoro Autonomous Region in Muslim Mindanao,” Recto said in a statement Wednesday, September 25.

He added that the region has a unique opportunity to establish a comprehensive digital system from the ground up, as they are starting with a blank slate.

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“They can learn and skip all the mistakes that the national government encountered. They can go straight to digital,” Recto said.

The tax administration transition plan addresses the shift of tax administration duties from the Bureau of Internal Revenue (BIR) to the Bangsamoro Revenue Office. It includes sharing the BIR’s registration and other pertinent systems in anticipation of the Bangsamoro Revenue Code’s enactment.

Looking back, the IFPB established a Tax Study Group (TSG) which will ensure the region’s long-term sustainability in line with the Bangsamoro Revenue Code. With this, the DOF-Revenue Operations Group is leading the discussions on the tax administration transition plan as the chair of the TSG.

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The IFPB was created under the Bangsamoro Organic Law (BOL) to deal with revenue imbalances and fluctuations in the regional financial needs and revenue-raising capacity of the region.

As of now, the TSG has completed 80 percent of its deliverables for the BOL. This includes guidelines on the Bangsamoro government’s share of national taxes, fees, and charges collected in the region, as well as the implementing rules and regulations for the payment of national internal revenue taxes by corporations, partnerships, or firms.

The group is set to meet and submit two proposed guidelines within this month for review by the IFPB.