April 17 deadline for filing income tax stays -- BIR

The Bureau of Internal Revenue (BIR) on Monday stood firm in imposing its April 17 deadline for the filing of income tax returns as taxpayers continued to flock to payment centers to avoid stiffer penalties. BIR Assistant Commissioner Lucita Rodriguez told GMA 7's DZBB that the bureau's tax collectors will accept payments only until Monday, otherwise they will be compelled to impose heavier fines. Earlier in the day, BIR officials said taxpayers unable to file their income tax returns (ITR) on time will be penalized up to 45% of the amount they were supposed to pay the government. Rodriguez assured, however, that BIR regional offices will be open beyond the 5 p.m. close of government offices. Meanwhile, she said authorized banks will accept payments until 5 p.m. Taxpayers can also file their ITR in some selected malls and city halls. Victoria Renante, technical assistant to the BIR deputy commissioner, said the 45% penalty includes a surcharge based on 25% of the basic tax. "Medyo malaki, normally almost 40-45% ang idadagdag kapag hindi nakabayad on time," Renante said in a radio interview. Aside from the 25% penalty on basic tax, delinquent payers will be charged an additional 20% per annum interest, computed from the day the taxpayer failed to settle his or her taxes. Starting April 18 for example, delinquent taxpayers face a 20% interest computed per annum, Renante said. The 20% amount is divided by 365 days and will then make up the daily interest. Renante noted additional charges on compromise penalty for non-filing, depending on the amount the taxpayer owes government. RVAT EFFECT BIR Commissioner Jose Mario Buñag said the bureau expects to collect P675 billion this years, about 23% higher than last year's collection of P547 billion. Buñag told GMA News that BIR officials sought a higher target following the implementation of the 12% reformed value-added tax (RVAT). "This (RVAT) is the fastest way to raise sales transactions. I think people have accepted it," Buñag said. The RVAT was implemented on February 1 amid complaints from activist and consumer groups that the increased levies on basic commodities will cast the heaviest burden upon the poor. The new tax measure incorporated previously VAT-exempt items such as petroleum products, utilities and medical fees. MORE TAXES Government executives earlier said the RVAT targets only heavy buyers and consumers, not the poor. The new tax measure is expected to bring an additional P81 billion in revenues this year and trim the budget deficit from P146.5 billion to P125 billion in 2006. The Department of Finance projected the RVAT to progressively raise revenues by P91 billion by 2007, P103 billion by 2008, P105 billion by 2009, and P120 billion by 2010. A previous survey by the IBON Databank, however, showed majority of poor taxpayers think EVAT only hiked prices of basic commodities. IBON is an independent research institution that provides socio-economic trends and opinion. Palace officials recently "forgave" IBON for its alleged biased studies. Meanwhile, Buñag on Monday inspected the BIR main office in Quezon Avenue Monday morning to ensure assistance booths were working to ease taxpayers expected to scramble at the office to file their ITR. Members of militant groups held a rally in front of the BIR to demand the government to spare low-wage earners from paying high taxes. Manila police were reportedly monitoring banks and payment centers in anticipation of the deluge of taxpayers trying to beat the government deadline. Police are also reportedly keeping close watch over the BIR office in Manila's Port Area.-GMANews.TV