Marcos orders abolition of DOF’s one-stop shop

MANILA, Philippines — President Marcos has directed the abolition of the finance department’s One-Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center as part of efforts to streamline the government.

Under Administrative Order No. 4 signed by Executive Secretary Lucas Bersamin last Feb. 20, the functions of the center – the processing and issuing of tax clearance certificates and duty drawbacks – will be transferred to the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), respectively.

The order said there is a “continuing need” for “institutional strengthening and promotion of economy, efficiency and effectiveness in the delivery of public service across all executive departments and offices.”

“It is the policy of the national government to rationalize the functional structures of agencies with complementary mandates and promote coordination efficiency and organization coherence in the bureaucracy,” the order read.

The abolition of the center was recommended by Finance Secretary Benjamin Diokno, who revealed that some of its officials and employees have been found to have committed “a series of several tax credit scams involving billions of pesos over the years.”

Diokno added that the abolition and transfer of the functions of the one-stop-shop center are in line with the Marcos administration’s efforts to rightsize the government. According to him, the move would streamline revenue operations and reduce administrative expenses.

The finance chief also noted that the center has not processed and issued any tax credit certificates since 2016.

“It is not practical for the government to provide for its budget every year since it does not perform its functions anymore,” Diokno said.

The order instructed the finance secretary to implement the abolition, including the disposition and transfer of the center’s functions, personnel and assets, within 90 working days.

The BIR and BOC were also directed to prescribe procedures to ensure that necessary control measures are established to safeguard against fraudulent claims in the processing and issuance of tax credits and duty drawbacks.

Personnel of the one-stop-shop center who will be affected by the order will receive separation benefits unless they are appointed to other positions in the government.

The One-Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center was created under Administrative Order No. 266 signed by the late president Corazon Aquino in 1992.

The center was established to ensure an orderly and expeditious processing of tax credits and duty drawbacks.