Incremental Revenue from Business and Miscellaneous Taxes to be Generated from New Tax Measures

November 6, 1984 REVENUE MEMORANDUM ORDER NO. 37-84 SUBJECT : Incremental Revenue from Business and Miscellaneous Taxes to be Generated from New Tax Measures TO : All Revenue Regional Directors, Revenue District Officers and Other Revenue Personnel Concerned In line with the policy decision to give greater impetus to the collection of business and miscellaneous taxes, several tax measures have been instituted, all aimed at strengthening business tax enforcement and administration. aisa dc Specifically, the said measures consist of the following: 1. Lifting of tax exemptions and preferential tax treatment of government-owned or controlled corporations and private business entities; 2. Increase in rates of documentary stamp taxes, percentage taxes on selected services, tax on insurance premiums and amusement taxes; 3. Change in method of inventory valuation from LIFO to moving average method. 4. Improvements in business tax administration such as stricter enforcement and closer monitoring of compliance, removal of package audit and simplification of tax credit application. The foregoing reforms are expected to generate incremental revenues from business and miscellaneous taxes. Revenue estimates of such increase have been made on the basis of the 1983 tax collection from such sources. acd For the information and guidance of all revenue officials and employees concerned, the targeted increase in business and miscellaneous tax revenues to be generated from the aforesaid tax measures has been set as follows: a. For the remaining two months of 1984, a ten per cent (10%) increase in business and miscellaneous taxes over that of the 1983 collections; and b. For the whole year of 1985; a sixty per cent (60%) increase over that of the 1983 collections. All revenue regional and district officers and employees concerned are, therefore, instructed to orient their activities towards the attainment of the abovestated internal goals in the collection of business and miscellaneous taxes. The said goals are not intended to limit the performance of the field offices, but rather should be regarded only as standards against which the realization of the full potential of the regional and district offices shall be measured and their performance appraised. CDT All concerned are urged to be guided accordingly. (Sgd.) RUBEN B. ANCHETA Acting Commissioner