Attrition law must be implemented based on BIR's downgraded goal

The Bureau of Internal Revenue (BIR) shall implement the provisions of the Attrition Act based on its downgraded goal of P2.848 trillion, which was approved by the Development Budget Coordination Committee (DBCC) and which the BIR achieved.

- By JASPER EMMANUEL ARCALAS

A source told The STAR that the implementation of the Republic Act 9335 or the Attrition Act, that incentivizes and penalizes the BIR's revenue collection performance, would be based on the last collection target approved by the DBCC.

This is despite the fact that the revised goal set by the DBCC last March 2024 of P2.848 trillion did not have a counterpart revenue memorandum order (RMO) issued by BIR commissioner Romeo Lumagui Jr, the source said.

Under the law, it is the revenue collection goal set by the DBCC that would be followed in the implementation of the incentives and penalties on tax collecting agencies like BIR and the Bureau of Customs.

The revenue collection target of the BIR was revised twice last year due to adjustments in macroeconomic assumptions by the DBCC as well as the non-passage of critical tax measures that would contribute to the collection of the bureau.