“Taxation,
a life of the Philippines”
Taxation is one of the inherent powers of the state that
is entrusted to the government to levy the revenues of persons and properties
that is within the jurisdiction of the Philippines. However, every Filipinos
should cooperate and be responsible enough in
paying their revenues for the development of the Philippines. (Agoncillo,
1974)
Taxation is the life-blood of the country because this is
the main source of revenue in the Philippines. (Briones, L., 1983) Taxes are
collected to finance the government’s expenditures and to allocate budget in
each departments of the government. The Bureau of Internal Revenue (BIR) plays
the biggest role in providing the revenues of the National Government. (Bacalla
T., 2000) Almost 80% of total revenues are from the tax payments of internal
revenue taxes being administered by the BIR. (J.M. Buñag, 2006) There are
three(3) major expenditures of the government that has been allocated a budget
every year. The Maintenance And Other
Operating Expenses, the Personnel
Services and the Capital Outlays.
According to the national financial report of 2010-2013, the biggest allotment
of revenue is in the ‘Maintenance and other Operating Expenses’. This covers
the repair and maintenance expenses, purchase of supplies and materials,
utility expenses and others. Second is in the ‘Personnel Services’ that caters
the salaries of employees in the government, their benefits, their uniforms and
others. Third is in the ‘Capital Outlays’ that includes the construction of
roads and government buildings, machineries and equipment, public
infrastructure and many others. (Briones, L., 1983) The revenues collected can
be a source of development in the country if all taxpayers would be true to
their records and pay their obligatory revenues regularly. Taxation could
positively build the developmental dreams of the state. (Mangahas, 2010)
There are many departments of the government that is
assigned to collect the revenues from persons and properties. These are the Department of Environment and Natural
Resources (DENR), the Department of
Finance (DOF), the Department of
Interior and Local Government (DILG), Department
of Justice (DOJ), Department of Transportations
and Communication (DOTC), and other executive offices. I would focus on the
two common departments which is Department of Finance (DOF) and the Department
of Interior and Local Government (DILG). Department of Finance by way of its
agency named BIR (Bureau of Internal Revenue) has the function of assessment
and collection of all internal revenue taxes, fees and sets charges. Tax payment is not designed to be voluntary,
but it is made to be an enforced contribution. (Sabine, 1961) Although taxation
is an enforced contribution, BIR fulfills its mandate by counting on the
support of willing and honest tax payers to make voluntary tax payments through
a self-assessment tax system. This system manifested clearly as it accounted
for 99.77% of the agency’s total collection in 2004. (J.M. Buñag, 2006) The Department of Interior and Local Government (DILG)
on its unit which is the Local Government Unit (LGU) has the responsibility of
collecting the Real Property Tax and
the Business Tax. Business tax and Real Property Tax is levied depending on the
owner’s chosen mode of payment. It can be collected monthly, quarterly or
annually. According to Mrs. Daisy Garcia of Dumaguete City Treasurers Office,
the usual struggle they encounter is when business owners and land owners
doesn’t pay regularly or when the payment is delayed.
Taxation has a big impact and role in the Philippines. (De
Leon, H. 2000) The outcome when tax payers become efficient in paying their
taxes is that, the government will also become sufficient in catering the needs
of the people. At the same time, the government will continue to do its
functions efficiently. There are many kinds of programs and projects that the
government has established for the benefit of the people. In order to restore
peace, the government established the Peace and Order program. The government
also created projects for Infrastructure Development. To ensure the health of
the people, government made programs for Health and Environment and for our safe
and security, the National Defense. There are many more projects and programs
offered to people locally and nationally.
Taxation produces energy to the government that gives
life to the Philippines. If all Filipinos would have been educated and has understood
all these things, development in different areas will never be questioned. Let
us not isolate ourselves in the blindness of reality, that we are the only ones
who becomes the obstacle of development in the Philippines. Let us not become
weary of doing good things, for the reward is on wait. Fellowmen, instead of
becoming a destruction, let us become a contribution to our beloved nation.
