Skip to main content

Why I Support Revenue Regulations No. 6-2022


The picture above is from the official Facebook page of the Bureau of Internal Revenue (BIR). I would be thinking about myself not questioning it. But as said, any democracy requires a critical mind to correct any flaws from the authorities. One of the issues I had in the past was the need to renew the Authority to Print (ATP) every five years. It's not like expired canned goods that wouldn't be validated. I have no problem with cash registers that need to be registered with the BIR. Cash registers, after all, produce the receipts which is the basis for the taxable income. Bookkeepers will need to take a look at the receipts, and write down the income for the month, businesses will end up paying value-added tax (VAT) if they reach a certain amount, and there are times that income taxes have to be increased or decreased depending on the situation.

I think I could pose a number of problems with the five-years expiry date after the pandemic had struck. It's time to name the following:

  1. People will print plenty of receipts because nobody knows when it will run out. However, time will come when people end up having to surrender bulks of receipt that were unused after the five-year ATP has ended. You can imagine the hassle that will create.
  2. Tenant profiling can be a lot more tedious than it has to be. Lessors will have to keep asking for the new ATP of tenants every five years. Renewing of contracts is one thing. I think making lessors have to collect new ATPs every five years from their tenants can be an unnecessary step. 
  3. I think having so many unused receipts will cause more trees to be cut down. We need to work for environmentally sustainable business environments. Penalizing or even shutting down businesses that don't obey environmental rules is one thing. I think having to keep printing new receipts every five years and leaving a lot of unused receipts, unused, will make tree-cutting more necessary than it should. 
Meanwhile, here is a few stuff that I believe will make it beneficial to get rid of the expiration of ATPS for good:
  1. Having the same ATP for a lifetime is the same as having the same driver's license for a lifetime. The difference is the driver's license expires after ten years. If a receipt is still legible, clear, and registered then why have the ATP expire after five years? It's not like a business permit that must be renewed yearly. The only time receipts should be surrendered is when a business closes or when a new receipt format is issued. Other than that, ATPs should remain as long as possible to avoid overcomplicating things. 
  2. If there are fewer unused receipts surrendered then there will be fewer trees that need to be cut. As said, the only receipts that need to be surrendered are of businesses that are closing down for a reason. We need to focus on environmental conservation.
  3. There would be smoother work processes. The only thing entrepreneurs need to be concerned more about is our sales and if they have enough receipts to declare to the BIR. I think renewing ATPs would complicate the process. I believe this new revenue regulation will allow the BIR to focus on taxable income as well.  
  4. I think the only time that the BIR has to be informed is when the business runs out of receipts. This isn't about issuing a new ATP but registering a new batch of freshly printed receipts to the BIR. I believe that only new batches of receipts need to be registered and not unused receipts getting surrendered because the ATP expired.
Pretty much, I hope we can find more hurdles to make business in the Philippines better. I salute the BIR for actually making this new revenue regulation. 

Labels:

Popular posts from this blog

#SahodItaasPresyoIbaba Economics' Understanding of How Gasoline Prices Work

International State College of the Philippines Today is Flor Contempacion Day , and rallies are expected. However, whether it's Flor's death anniversary or not, rallies are expected for the wrongest of reasons. I would like to address this photo from the International State College of the Philippines' Facebook page. The demands here are rather clunky and stupid. We have the following demands that would naturally clash with each other, such as: No to the oil deregulation law while demanding lower oil prices. This is simply ignoring the basic fundamentals of economics, namely the law of supply and demand . They say that oil companies are greedy for gain. These rallyists probably don't really understand the difference between revenues and profits . Let's understand the Oil Deregulation Law  The Oil Deregulation Law, or the Republic Act No. 8479 , passed on February 10, 1998, under the late Fidel Valdez Ramos. Here's how the liberalization works: CHAPTER II  LIBERAL...
Read more

"Will #SahodItaasPresyoIbaba Economics Lower Philippine Gas Prices?

Inquirer Gasoline prices have increased again, haven't they?  A few days ago, I wrote  why #SahodItaasPresyoIbaba's view of gas prices is questionable . Today, I feel like writing this after several complaints on Facebook. I would like to create a follow-up post. People are complaining too much without understanding the real reason why some countries have lower prices of gasoline. Real talk. We need to talk about economic policies,  and  of course, please do a study on supply-demand analysis  on supply chain management . Let's examine the complaints made by Bulatlat Bulatlat Here's a chart from Bulatlat that compares the increase in prices of gasoline between the Philippines, Thailand, and Malaysia. It's always problematic when people ignore simple economics. It's funny, but Bulatlat mentions this on their website: Note also how expensive our diesel and gasoline products are compared to those of our ASEAN neighbors. The estimated common price today of diesel in...
Read more

Is Jollibee "Invading" South Korea Now as It's About to Acquire 70% of Shabu All Day?

I must confess that I find this new rather hilarious . It's because the word shabu is often associated with drugs. All the while, shabu shabu is a Korean delicacy! Well, I'm going to say that Jollibee Foods Corporation has now become a multinational buyer . Jollibee acquired 70% of Compost Coffee back in 2024 . This year, Jollibee as a multinational corporation is now acquiring Shabu All Day for PHP 5.1 billion pesos. Is Jollibee checkmating South Korea or is the Philippines conquering South Korea not just by OFWs but als through Jollibee? The answer is still no. From GMA News , we can read this article by Jon Viktor D. Cabuenas: Under the deal, Shabu All Day will be consolidated into Jollibee Foods Corp.’s (JFC) financial statements immediately upon completion of the acquisition for a total consideration equivalent to KRW127 billion. Completion of the transaction is subject to closing and financing conditions. The acquisition is expected to lead to a 2% jump in revenues, incre...
Read more

The Good Old Days when Gasoline was Cheaper Under the Late Noynoy Aquino

Millennials' Voice I would like to clarify first and foremost that this post isn't an attempt to say that the late Benigno Simeon C. Aquino III's legacy was all bad. Some good things happened. However, let me be clear that it's stupid to say, " We don't need economic cha-cha because of the late Noynoy. " However, let me clear that I decided to write this because of a Facebook post called Millennials' Voice , which wrote this: Did you know that during President Noynoy Aquino's time, the price of oil in the world market was high, between $100 and $110 per barrel. But even with those high prices, gasoline and diesel at local pumps in the country were still relatively affordable.  Under President Duterte, world oil prices went up and down, from a low of $41 to a high of $101 per barrel. The big jump to $101 in 2022 happened because of the war between Russia and Ukraine.   Now, under the current president, world oil prices have gone up again to around $...
Read more

Migrante International: Still Mourning for the Late Flor Contemplacion While Sticking to Third-World Development Economics

Unsurprisingly,  The Flor Contemplacion Story was uploaded a month ago. I wrote that there's a possible political motive behind the film getting uploaded on YouTube . That's why I even wrote a review against the film after I rewatched it in HD . It's no surprise that Migrante International is inducing its own migraines. The evidence against Flor was already overwhelming, as presented by the Singaporean court . Do these people act as if there was no injustice in the Philippines? What about how the Vizconde Massacre was handled where, until now, the real perpetrators have not been found? Two years after Flor's execution, the Chiong Sisters case arrested the wrong people,  and a doubtful Supreme Court of the Philippines' decision was released. Yes, a murder happened in all three cases. Singapore convicted the real killer of the slayings of Delia Maga and Nicholas Huang. Meanwhile, the Philippines had wrongly convicted Hubert Jeffry P. Webb (whose 15 years were wasted) ...
Read more