MONDAY |SEPTEMBER 17, 2007 | PHILIPPINES

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Exemption of BIR, BOC
from pay standardization mulled


FINANCE Secretary Margarito Teves said Thursday that the finance department would study the possible exemption from the Salary Standardization Law (SSL) of personnel from the Bureaus of Customs and Internal Revenue in order to boost revenue collections.

Teves said in an ambush interview in Malacañang that exempting the BIR and BOC employes and officials from the SSL would enable them to be given higher pay and benefits which would entice them to perform better in terms of collecting taxes for government.

He said the study could be done by the finance department or a consultant. He said the World Bank and International Monetary Fund could also be tapped for support.

"We could have an organization from the private sector like Watson Wyatt to take a look at the salary structure. It’s still in the exploratory stage. There’s nothing definite yet," he said.

Teves said the study would have to be very thorough and should consider the culture, organization and unintended effects of the exemption.

He said the final recommendations would still have to go through Congress because it is the Legislature which passes bills on exemptions from the SSL. "Even if the studies are well taken there are legal hurdles that we have to go through. They will have to go through Congress," he said.

The BIR has a workforce of more than 11,000 while the BOC has 4,000 employes.

Customs Commissioner Napoleon Morales has expressed support for the proposal of Teves to exempt the BOC from the SSL. He said in other countries, the customs’ annual budget is a percentage of the target revenue collections for the year, which gives the agency more funds for operations and incentives to deserving personnel.

Morales said the BOC’s budget is only half percent of the P228 billion revenue goal for the agency this year. He said of the P1.2-billion BOC budget, P900 million goes to salaries and the balance to operating expenses.

He said the BOC relies on international grants to improve facilities and regularly train and evaluate its people. – Regina Bengco

 
 


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