SENATORS on Thursday slammed the door on suggestions that the Arroyo government, burdened by a ballooning budget deficit, could enact new taxes to make up for the Internal Revenue and Customs bureaus’ collection shortfalls.

Sen. Francis Escudero insisted that the sudden resignation of Bureau of Internal Revenue (BIR) chief Sixto Esquivias IV over BIR’s failure to meet its revenue-collection targets should not be used to justify new taxes.

“I still believe in improving collection efficiencies; make sure that existing taxes be collected properly before we even consider the imposition of new taxes,” Escudero told Senate reporters.

Senate President Juan Ponce Enrile earlier indicated that senators are not keen on supporting new tax measures that would further weigh down already-overburdened taxpayers, but would consider measures that streamline collection of existing taxes.

One BIR-initiated measure to shore up collections is running into a legal minefield, however. On Thursday, Comelec chairman Jose Melo declined to be stampeded into sealing an agreement with the BIR greenlighting the BIR’s 5-percent campaign tax requirement, to be imposed on donors and suppliers of campaign services and materials, according to an ANC report.

Melo had earlier said the sudden decision to impose the requirement may violate the election code. Makati Mayor Jejomar Binay said the BIR scheme seems tailored to weaken the chances of opposition candidates, who have no access to huge state resources and rely only on donations. The businessmen and parties donating to their campaign could feel harassed by the BIR, he added.

Malacañang, however, is confident that all political parties would comply with the 5-percent tax on campaign donations and expenses once it becomes clear to them it is not discriminatory and applies to all.

Deputy Presidential Spokesperson Anthony Golez also said it is not fair for the opposition to claim that the tax measure is meant to harass them, in particular, since all parties would have to comply with it.

“It [tax] is not focused on the candidates but on the goods and services to be bought by candidates. They will all do the same so we do not see any unfair play on this issue,” Golez said.

He explained that Revenue Regulations 8-09 is within the purview of the BIR’s expanded withholding-tax system under the BIR Code and has existed for 30 years.

Deputy Presidential Spokesperson Lorelei Fajardo said that the once the implementing rules of the contested scheme are fully explained to all concerned, “there is no reason for them not to follow.”

Big legroom

AT the weekly Kapihan sa Senado media forum, Escudero argued that “there is a big leeway where government can get more revenues by simply collecting taxes that are presently being imposed instead of doing the knee-jerk reaction of simply imposing a new one.”

Escudero explained that the P1.541-trillion proposed national budget for next year could be supported despite thinning revenue streams if both the BIR and Customs will redouble efforts to improve tax collections.

“This government has always taken pride in one thing: that supposedly they have managed the fiscal situation of the country quite well; and yet what they are leaving behind to the next government is a debt-ridden government that has a high deficit and a government that has no other way by which to fund to each budget other than by borrowing or the imposition of new taxes,” he added. B. Fernandez, M. Gonzalez