THE Department of Finance (DOF) is spearheading the preparation of the Tax Administration Transition Plan for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
In a statement yesterday, the DOF said the plan includes the establishment of a digitalized tax system for efficient payment and collection of revenues in the region.
“This plan ensures a seamless and efficient transition for all taxpayers in BARMM. BARMM holds a unique advantage by building a comprehensive digital system now as they are starting from scratch. They can learn and skip all the mistakes that the national government encountered. They can go straight to digital,” Finance Secretary Ralph Recto said.
“We fully support the success of this transition as efficient and effective tax administration is crucial to the genuine development and fiscal autonomy of BARMM, as well as to our inclusive growth as a nation” he added.
The Intergovernmental Fiscal Policy Board (IFPB) approved the creation of an Operational Working Group (OWG) to lead the crafting of the Tax Administration Transition Plan during the 7th National Government-Bangsamoro Government Meeting last September 3.
The Bangsamoro Organic Law states that the BARMM shall enjoy fiscal autonomy, and have the power to create its sources of revenues as provided under this law.
A Tax Study Group (TSG) was created by the IFPB for this matter in May 2020, including the creation of the Bangsamoro Revenue Code to ensure the region’s long-term sustainability.
As the chair of the TSG, the DOF-Revenue Operations Group is leading the discussions on the Tax Administration Transition Plan.
This plan covers the transition of tax administration functions from the Bureau of Internal Revenue (BIR) to the Bangsamoro Revenue Office including the sharing of the BIR’s registration and other relevant systems in view of the enactment of the Bangsamoro Revenue Code.
