BUSINESS
Advocates Philippines
Sec. Diokno pushes for Abolition of One-Stop Shop Center
The Department of Finance (DOF) is moving to abolish the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS Center) to enhance bureaucratic efficiency and reduce administrative expenses.
Finance Secretary Benjamin Diokno welcomed the issuance of Administrative Order No. 4, which directs the transfer of the OSS Center's assets, liabilities, and obligations to the DOF.
The OSS Center, created in 1992 to simplify and streamline the processing of tax credits and duty drawbacks, has been plagued by corruption allegations over the years and has been defunct since 2016. The processing and issuance of tax credits and duty drawbacks will now be done by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).
"It is not practical for the government to provide for its budget every year since it does not perform its functions anymore," Secretary Diokno said. "This will streamline revenue operations and reduce administrative expenses, he added.
The move to abolish the OSS Center comes after some of its officials and employees were found to have committed several tax credit scams involving billions of pesos over the years. In 2022, Secretary Diokno recommended to the President the abolition of the OSS Center for purposes of institutional strengthening and to promote economy, efficiency, and effectiveness in the delivery of public services.
The DOF believes that transferring the functions of the OSS Center to the BIR and BOC will result in a more efficient and effective revenue collection system. The move is expected to enhance the government's efforts to combat corruption and promote transparency in the revenue collection process. The DOF is optimistic that the move will help improve the country's fiscal performance and bring the Philippines closer to its goal of becoming a more competitive and prosperous nation.
Finance Secretary Benjamin Diokno welcomed the issuance of Administrative Order No. 4, which directs the transfer of the OSS Center's assets, liabilities, and obligations to the DOF.
The OSS Center, created in 1992 to simplify and streamline the processing of tax credits and duty drawbacks, has been plagued by corruption allegations over the years and has been defunct since 2016. The processing and issuance of tax credits and duty drawbacks will now be done by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).
"It is not practical for the government to provide for its budget every year since it does not perform its functions anymore," Secretary Diokno said. "This will streamline revenue operations and reduce administrative expenses, he added.
The move to abolish the OSS Center comes after some of its officials and employees were found to have committed several tax credit scams involving billions of pesos over the years. In 2022, Secretary Diokno recommended to the President the abolition of the OSS Center for purposes of institutional strengthening and to promote economy, efficiency, and effectiveness in the delivery of public services.
The DOF believes that transferring the functions of the OSS Center to the BIR and BOC will result in a more efficient and effective revenue collection system. The move is expected to enhance the government's efforts to combat corruption and promote transparency in the revenue collection process. The DOF is optimistic that the move will help improve the country's fiscal performance and bring the Philippines closer to its goal of becoming a more competitive and prosperous nation.
Feb 23, 2023
