By Roy Pelovello

Fearing a shortfall in tax and duty collections as a result of the global financial crisis, Rep. Magtanggol Gunigundo has proposed the deferment of a law that penalizes Customs and Internal Revenue officials for low revenue take.

A revenue shortfall is imminent given the global economic slowdown and if the lateral attrition law is enforced, all of the Customs and tax officials will be wiped out, Gunigundo said.

The Lateral Attrition Law signed on Jan. 25, 2005 provides a system of rewards and punishment for Customs and Internal Revenue personnel to encourage them to be more efficient in collecting taxes and revenues for the government.

“Many revenue officials may not meet their targets and it is not because of their inefficiency but because of the financial crisis,” Gunigundo said yesterday. “It is unjust to blame revenue officials for low collections. All of them will be wiped out from the service.”

Gunigundo, chairman of the House committee on labor and employment, filed House Bill 5569 or the proposed Deferment of the Lateral Attrition Act (Republic Act 9335) of 2008.

“Economic managers have stated fearless forecasts about the looming crisis and the Philippines is not spared from it. We are on a crisis and we cannot deny it,” Gunigundo said.

The Revenue Performance Evaluation Board should act swiftly to declare and acknowledge this problem since all sectors are suffering from economic difficulties, Gunigundo said.

Under the law, Gunigundo said the evaluation board administers a Reward and Incentives Fund.

The law says that officials of either bureaus will be penalized, if not dismissed from the service, if they fall short of their revenue collection target by at least 7.5 percent, while those who will exceed their goals will receive monetary incentives.