MANILA, Philippines—Heavy fines and more time in jail.

These penalties await business operators who fail or refuse to issue receipts to their customers, said the Department of Finance (DOF), which is pushing for increased fines and longer prison terms for errant taxpayers.

House Bill No. 5566 introduced by Quezon Rep. Danilo E. Suarez seeks to amend Section 264 of the Tax Code which refers to the issuance of invoices and violations related to the printing of receipts. According to the National Tax Research Center (NTRC), a part of the Department of Finance, changes in the code should be made through the bill.

The proposal increases the minimum fine from P1,000 to P20,000, and the maximum fine from P50,000 to P100,000 for the violations.

The bill also seeks an increase in the prison term to three years, from two years, and a maximum period of six years, from the original four.

“Given the implication on the revenue generation efforts of the government, strengthening the penal provision under the said section is really called for,” the NTRC said.

“The increase in fines is long overdue considering that it has had virtually no amendment for the past 20 years,” it added. “Considering the lapse in time, it is obvious that the level of fines is no longer realistic.”

The NTRC said the proposed fines were similar to the existing fines for unlawful possession of cigarette paper, illegal use of denatured alcohol, and shipment or removal of liquor or tobacco products under a false brand or as an imitation of an existing one.

“A review of the other penal provisions of the code should be made in order to avoid possible instances where lighter violations are given heavier penalties than more serious offenses,” it said.

However, the NTRC noted that the proposed maximum prison term of six years was heavier than the existing penalty for evading taxes.