JV Ejercito expects stronger revenue collection with BIR LOA reforms


MANILA, Philippines — Senator JV Ejercito expressed optimism that reforms in the Bureau of Internal Revenue’s (BIR) Letter of Authority (LOA) system would lead to stronger revenue collection at a time when government finances face mounting pressure.

“We badly need revenues right now. We are already facing around a ₱200-billion shortfall early this year. That is a heavy burden on our fiscal position,” Ejercito said on Tuesday during a Blue Ribbon Committee hearing on the alleged misuse of LOAs.

He also noted that the suspension of the old LOA system and the safeguards being put in place should help eliminate abuse and improve efficiency in tax collection.

“Now that the old LOA process has been halted and reforms have been instituted, we expect a significant improvement in revenue collection. Hopefully, the amount of revenue coming in now—properly receipted—will increase,” Ejercito said, speaking in a mix of Filipino and English.

The senator also thanked citizens who came forward to report irregularities, saying that public vigilance was crucial in addressing gaps in the system.

It can be recalled that Ejercito had previously called out what he described as a “widening culture of corruption” within the BIR, warning that abusive tax enforcement hurt ordinary Filipinos and small businesses that faced intimidation instead of fair audits.

He added that the issue had even been raised by foreign chambers.

“What is sad here is that during the President’s last visit to Japan—whether it was a state visit or a working visit—the issue of foreign investors being subjected to abuse by our BIR became part of the bilateral talks,” Ejercito said.