This move is expected to streamline revenue payment and collection across the region, promoting efficiency and transparency.
"BARMM holds a unique advantage by building a comprehensive digital system now as they are starting from scratch. They can learn from and skip all the mistakes that the national government encountered. They can go straight to digital,” Finance Secretary Ralph G. Recto said in a statement.
The transition plan was approved by the Intergovernmental Fiscal Policy Board (IFPB) during its 7th National Government-Bangsamoro Government Meeting on Sept. 3, 2024.
The IFPB, created under the Bangsamoro Organic Law (BOL) and co-chaired by Recto and BARMM Minister of Finance, Budget and Management Ubaida C. Pacasem, is responsible for addressing revenue imbalances and regional financial needs.
The BOL states that the BARMM shall enjoy fiscal autonomy and have the power to create its sources of revenues as provided under this law.
A Tax Study Group (TSG) was created by the IFPB for this matter in May 2020, including the creation of the Bangsamoro Revenue Code to ensure the region’s long-term sustainability.
As part of the transition, the Bureau of Internal Revenue (BIR) will transfer tax administration functions to the Bangsamoro Revenue Office (BRO).
The DOF’s Revenue Operations Group, in collaboration with the BIR and BARMM officials, is set to finalize key guidelines for the transition.
The TSG reported that it has so far completed 80 percent of its deliverables for the BOL, including the guidelines on the share of the Bangsamoro Government in national taxes, fees, and charges collected in the BARMM, and the implementing rules and regulations on the payment of national internal revenue taxes by corporations, partnerships or firms.
