The Bureau of Internal Revenue (BIR) Cordillera Administrative Region (CAR) said it is confident of better revenue collection for this year, with the remittances of taxes from projects implemented in 2025.
BIR-CAR Director Joseph Catapia said Wednesday that the Department of Public Works and Highways (DPWH) is expected to release its PHP7 billion contract budget in the first quarter of 2025, enabling the agency to withhold approximately PHP490 million in income and value-added taxes.
He said they are in constant contact with the DPWH for the remittance of taxes, which will greatly boost the region’s tax collection efficiency.
Based on BIR-CAR records, the region posted a collection shortfall of up to PHP1.114 billion in 2025
He also mentioned the CHAT program, which started in February this year.
CHAT, which stands for providing counselling, help, and assistance to taxpayers, is a friendly visit from personnel.
“There were violations seen which include non-registration, non-maintenance of books in the place of operation, and others which in ordinary times should have resulted in penalties, but with the concept of the CHAT program to assist the taxpayers, they were simply provided aid on how to comply and correct the violations,” he said.
In the Cordillera, 13,580 establishments were inspected during the one-week implementation of the CHAT program.
Baguio City topped the list of visited establishments with 5,471; followed by La Trinidad, Benguet, 3,295; Abra, 1,456; Lagawe, Ifugao, 1,440; Tabuk City, Kalinga, 1,386; and Bontoc, Mountain Province, 822.
Of the number, 2,640 were flagged as unregistered businesses.
“They were counselled, and as of March 16, there were already 1,056 who have complied, making them already part of the system contributing to the tax payment,” the director said.
“We would rather increase further the 97 percent, which is voluntary compliance to pay tax dues, than go through the process of audit investigation. Our taxpayers perform their obligations voluntarily, and sometimes, it is just a matter of explaining to them the process for them to correct the violations,” he said.
He also said they are going after non-compliant online businesses, noting that their compliance will result in better tax collection, which funds the government’s programs and projects. (PNA)
