Philippine Congress pushes for Unified Invoice System to improve tax payment

By eGov Innovation Editors | Mar 16, 2011

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MANILA - Philippine lawmakers are strongly pushing for the creation of a unified invoice system which will enhance tax payment consciousness among taxpayers and improve tax collection as well, the House of Representatives reported in its website.

Rep. Godofredo Arquiza, author of House Bill 4089, said the measure aims to create a centralized printing of official receipts to be undertaken by only one printing outfit or factory, which will be under the direct supervision and control of the Bureau of Internal Revenue (BIR).

"It's about time that we adopt a unified invoice system to effectively reduce, if not eradicate, the irregularities and anomalies in tax collection and tax evasion," Arquiza said.

He added that the scheme is envisioned to arrest multi-billion tax losses from the widespread practice of non-issuance of receipts and from the printing of fake, spurious and unregistered official receipts as well as rampant graft and corruption.

"This will improve tax collection through a tightened government control on the printing and issuance of Official Receipts," Arquiza explained.

Rep. Philip Pichay, co-author of the measure, said the Unified Invoice System does away with the onerous imposition of the Expanded Value Added Tax (E-VAT) and R-VAT or Republic Act 9337.

"Under this system, the tax collection effort and efficiency of the government is enhanced through the widening of the tax base, which translates to a sizeable increase in the issuance of official receipts without prejudice to the present 12 percent VAT imposed on goods sold and service rendered," Pichay said.

Pichay explained that the Unified Invoice System gives more teeth to the government's intensified drive for greater revenue generation through the control of Official Receipts and the collection of correct taxes from a wider tax base.

Under the proposed measure, the BIR is mandated to create a centralized printing office of all Official Receipts to be undertaken only by one printing outfit or factory which will be under its direction, supervision and control.

The standardized official receipts shall be classified according to industry, profession or business. This will prevent the printing and issuance of double or triple sets of receipts, as well as the printing of fake, spurious and unregistered receipts.