National Revenue Authority touted as possible BIR, BoC replacement

THE overhaul of the government’s main revenue agencies must be revisited, particularly the consolidation of the bureaus of Customs and Internal Revenue into a National Revenue Authority (NRA), a former Finance department official said.

Former Undersecretary Cielo D. Magno called for the revival of a proposal to establish the NRA, “given all of these challenges and problems with respect to revenue mobilization.”

“I think it’s again time to think of reforming the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC), and revisiting the idea of creating a National Revenue Authority,” she said in a University of the Philippines School of Economics event on Feb. 6.

House Bill 695, filed in 2017 by former President Gloria Macapagal‑Arroyo, sought to replace the BIR and streamline tax collection.

Last year, the BIR came under fire from the private sector over the alleged misuse of letters of authority, which serve as the precursor to tax audits. The Bureau of Customs also faced complaints from US firms about intrusive inspections, inconsistent charges, and demands for “facilitation fees.”

Both agencies missed their 2025 collection targets as the economy slowed in the wake of the flood control corruption scandal and a freeze on rice imports.

Meanwhile, Raymond Abrea, chairman and chief executive officer of the Asian Consulting Group, backed the abolition of both bureaus and proposed a state-owned, professionally managed, performance‑driven NRA.

Mr. Abrea said the NRA should operate like a government‑owned and -controlled corporation (GOCC) to insulate revenue collection from political interference.

“This is crucial because the Constitution mandates that the authority to collect revenue rests with the government. So the legal aspect of that needs to be studied carefully,” he said in the Chikahan with Prof. Cielo Magno: The Tax ng Ina Mo Podcast on Feb. 4.

Mr. Abrea likened the NRA to the Inland Revenue Authority of Singapore.

A GOCC structure would free the NRA from budget constraints, attract top private‑sector talent, and fully automate tax and customs administration using digital platforms, artificial intelligence, and blockchain systems, he added.

The government hopes to collect P4.82 trillion in revenue in 2026, with P3.431 trillion expected from the BIR and P1.003 trillion from the BoC.

BusinessWorld reached out to the Department of Finance, but said its officials were not immediately available to comment.

The BIR and Customs Commissioners were approached for comment, but had not replied at the deadline. — Aubrey Rose A. Inosante