The coronavirus disease 2019 (Covid-19) pandemic highlighted the importance of a digitized tax administration alongside the efficient and effective implementation of payments systems, the National Tax Research Center (NTRC) said. The state-run think tank said that in the Philippines, the utilization of payment systems in tax administration is no longer new as the Bureau of Internal Revenue (BIR) already adopted several digital innovations in a bid to encourage tax compliance and improve collection performance. NTRC, citing a report presented by the Financial Technology during a convention in 2017, said that 96 percent of the transactions in the Philippines were still done in cash. Aside from these, the lack of reliable and secure payment infrastructure, and the slow internet connection in some areas also contributed to the low adoption. “The digital adoption of payment systems is important for tax authorities and taxpayers as it lowers the cost of tax compliance and administration,” said NTRC.

Source: Manila Times November 22, 2020 16:30 UTC