The head of the Philippines’ Bureau of Internal Revenue (BIR), which brings in most of the government’s revenues, has resigned over the agency’s failure to meet its targets, the president’s office said on Monday. Press Secretary Cerge Remonde told reporters the president will announce a replacement on Tuesday for the head of the bureau that brings in two thirds of government revenues. Sixto Esquivias took the helm in November 2008, making him the fifth tax chief to be appointed by President Gloria Macapagal Arroyo since she took office in 2001.
‘The president has accepted his resignation,’ Executive Secretary Eduardo Ermita said in a statement. ‘He has not performed well and he said he takes responsibility for it. He said the president should be given the chance to make changes as she sees best.’ The government’s budget is already under pressure with widespread expectations its deficit will spread beyond the record target of 250 billion pesos, or 3.2 percent of GDP. Tax collecting in the Philippines has been dogged for years by widespread tax evasion, corruption and inefficient tax administration. The difficulty of the task was made worse this year by the global economic downturn.
