President Ferdinand Marcos Jr. speaks during a press conference in Tokyo on February 9, 2023. (Photo by Kimimasa MAYAMA / POOL / AFP)
MANILA, Philippines — As his administration pushes for rightsizing in government, President Ferdinand “Bongbong” Marcos Jr. has ordered the abolition of the Department of Finance’s One-Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS Center).
Under Administrative Order No. 4 which was signed by Executive Secretary Lucas Bersamin on February 20 and released on Wednesday, the OSS Center’s functions of processing and issuing tax clearance certificates (TCCs) and duty drawbacks will be transferred to the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), respectively.
“All other assets and liabilities of the OSS Center shall be transferred to the Department of Finance (DOF) in accordance with pertinent auditing laws, rules and regulations except all cash separately held in trust or otherwise by the OSS Center, which shall be directly remitted to the National Treasury,” the order read.
According to the Presidential Communications Office, DOF Secretary Benjamin Diokno recommended to the President the abolition of the OSS Center.
Among the reasons for his recommendation was the series of tax credit scams committed by the agency’s officials and employees “involving billions of pesos over the years.”
“Its abolition and transfer of functions under the BIR and the BOC are in line with the Marcos Jr. administration’s push to right size government. This will streamline revenue operations and reduce administrative expenses,” Diokno added.
Diokno also pointed out that the OSS Center has not processed and issued any tax credit certificates since 2016.
“It is not practical for the government to provide for its budget every year since it does not perform its functions anymore,” he said.
Under the order, OSS center personnel who would be affected by the move will “receive separation benefits…unless they are appointed to other positions in the government.”
The OSS Center, which is under the DOF, had been created under Administrative Order No. 266 for the orderly and expeditious processing of tax credits and duty drawbacks under various laws.
“[It] is the policy of the National Government to rationalize the functional structures of agencies with complementary mandates and promote coordination efficiency and organization coherence in the bureaucracy,” the AO said.
Within 90 working days upon the effectivity of the AO, the DOF Secretary “shall fully implement the abolition, including the disposition and transfer of the OSS Center’s functions, personnel and assets as may be necessary.”
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