Tax collection still to be improved

WHILE it is happy over the findings of a new Social Weather Stations (SWS) survey on business, Malacañang admitted Saturday that much work remains to be done in improving tax collection.

Deputy presidential spokesman Ricardo Saludo said Malacañang is heartened that the SWS findings show a slight improvement in business perceptions despite stories on corruption in media.

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“We are heartened over this. This shows that despite negative stories about corruption in media, the perception of corruption has not worsened,” Saludo said in a radio interview.

He also said the survey finding that 40 percent of managers say access to public information improved in last five years can be due to the Anti-Red Tape Act.

Saludo at the same time lauded a finding that two-thirds claim there was no more need for a fixer to renew permits.

But the Palace official admitted the government has much to do to improve tax collection and address the problem of tax evasion.

“We need to improve the collection of taxes,” he said.

He noted the survey showed only one of five companies pay taxes honestly, while two out of three do not issue the proper receipts.

“That is where we are worried. We must improve on our tax collection, and encourage tax payers, especially corporate taxpayers, to do their part.”

The SWS survey had shown many enterprise managers find the annual renewal of local business permits and licenses is easier now compared to three years ago.

It also disclosed that the annual renewal of business permits and licenses is easier, according to 70 percent of enterprise managers in Metro Davao, 67 percent in Cagayan de Oro/Iligan City, 61 percent in Metro Cebu, 48 percent in CALABA, and 47 percent in Metro Manila.

Other highlights of the 2009 SWS Surveys of Enterprises on Corruption include:

1. Managers consider public sector corruption to be high and stagnant. The farther from the local level, the more that corruption happens.

2. Sincerity in fighting corruption varies across agencies. It was notably up in trial courts, Armed Forces of the Philippines, Department of Justice, Government Service Insurance System, Commission on Elections, and Presidential Commission on Good Government. On the other hand, it was notably down in Commission on Audit, Department of Finance, Department of Budget and Management, Department of Transportation and Communication, Presidential Anti-Graft and Corruption, Department of Environment and Natural Resources, and Office of the President.

3. On government efforts to fight corruption, half of managers see improvement in transparency in bidding for a government contract.

4. The proportion of enterprises solicited for a bribe was below the 2008 peak, but still a high 60 percent.

5. Majority of managers find transparency in local government procedures. At least two-thirds do not use intermediaries in local business permit renewals.

6. Two-fifths of managers sense improvement in public access to information; three-fourths support passage of a strong law on right to information.

7. Managers consider private sector corruption to be less than public corruption. However, the trend is flat.

8. Willingness of enterprises to fund an anti-corruption program is back to 5 percent of net income, similar to 2005 and 2006 after a slump in 2007.

9. Managers reporting honest business practices in their sector remain few.

10. In voting for President, “fighting corruption” and “creating jobs” are first and second priorities of both managers and the public. Third priority is “promoting a good business environment” for managers, but “eradicating poverty” for the public.

11. Managers consider the business climate to be better than 2008. (JMR/Sunnex)