Press Release
July 31, 2013

Recto on BOC reforms

On BOC reforms:

The big picture is that Customs is under orders to collect P408 billion next year. That's a P68 billion jump from their P340 billion quota this year.

One peso in every five tax pesos that will be collected next year will come from the BoC. This can be viewed from another angle, that for every 100 meters of road that will be built next year, 20 meters will be bankrolled by Customs, or for every five books that will be bought out of tax collections, one will be courtesy of the BoC.

I hope that whatever reorganization that will happen in the BoC will allow it to reemerge as a stronger organization that can give the Republic the funds to build roads, buy medicine and pay for the salaries of teachers.

That should be the context that whatever tribulations the BoC is presently undergoing must be appreciated. It has received lots of brickbats. It also needs positive reinforcement.

One focus of reforms should be oil smuggling. Mr Ang of Petron is on record saying that the government loses P30 to 40 billion a year in revenues to diesel and gasoline smuggling.

That P40 billion is more than the annual subsidy the national government gives to the 120 state colleges and universities. If captured, think of the schoolbuildings it can build.

Sa oil dapat nakatuon ang pansin. Kasi ang tanker ng mga gasolina ay malalaki. Kasing laking ng Megamall. Hindi naman yan relo na ipinupuslit na pwedeng isuksok sa bulsa.

The number of cars being registered in the country is increasing every year. In 2010, there were 1,128,369 new cars and motorcycles on the road. In 2011, 1,277,895 were added. Actually, we don't need statistics to verify that, the gridlock in EDSA validates that daily.

However, available records on the sales of oil products show a marked decline. In 2010 reported total gross sales of 21 taxpayers in the petroleum sector was P593 billion. In 2011, it plummeted to P374 billion. Anyare?

There is no singular magic pill that will cure the many ills plaguing the Bureau of Customs. What it needs is a cocktail of solutions ranging from overhauling the organization, to overhauling rules on assessment and procedures, and even overhauling laws.

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