Bullet testing, gun license fees to rise, allowing PNP to buy new equipment

MANILA, Philippines - The Philippines’ police force secured approval to increase fees for bullet tests and gun licenses, proceeds of which will be used to acquire a modern ballistic testing system. Although the endorsement awaits formal approval from Malacañang through an executive order, the hike in fees are expected to bring in an additional P650 million windfall for the Philippine National Police (PNP). The windfall may even exceed estimates since the upcoming elections may hike purchases of firearms which will be used for candidates’ protection. Earlier, the country’s police force sought approval from Malacañang to hike ballistic fees to P1,000 from the previous P350. The agency also sought endorsement to impose a recurring P200 computerization fee on top of the P5,000 for firearm license renewal. Proceeds from the fee hike would be used by the agency to acquire its own firearms integrated ballistic identification system (IBIS) under the auspices of the PNP Crime Laboratory Group. As of November 2008, there are 1.1 million licensed gun owners in the country. Before it issues an executive order, the Office of the President has sought opinions of the Department of Finance (DOF) and the National Economic and Development Authority (NEDA). Both agencies have posed no objections to the proposal. “We support NEDA’s observation that there is merit in the PNP’s proposal. We see no impediment in the proposed increase in fee nor in the imposition of new fees," the National Tax Research Center (NTRC) said in its memorandum to DOF Undersecretary Gil Beltran. Next: Tax think-tank says bullet test rates “too high" Tax think-tank says bullet test rates “too high" However, the NTRC said that the bullet test fee hike was too high, citing a circular that requires agencies to impose “just and reasonable fees" when increasing rates. The almost 300 percent ballistic fee increase is way above the 20 percent “tripwire" for rate hikes, the body said. Beyond 20 percent, the agency seeking permission to adjust rates must consider the services’ direct costs, salaries and wages of personnel involved in the service, and the agency’s overhead costs. The NTRC also rejected the PNP’s proposal to use rate hike proceeds under its “PNP Trust Receipts" to bankroll the acquisition of its IBIS system. “Fees, charges and assessments and other revenues by departments, bureaus, offices or agencies shall be deposited with the National Treasury and shall accrue to the General Fund," the NTRC said, citing the general appropriations law. The PNP was advised to seek a private partner to acquire and operate the IBIS if the agency has a problem with funding, the body said. The Land Transportation Office (LTO) underwent the same process when it automated the processing of drivers licenses, the NTRC said. - GMANews.TV