DoF sees digitalization deterring misuse of taxes

THE Department of Finance (DoF) said digital reforms will mitigate corruption and rebuild trust in tax administration, as the government faces questions about corruption in flood control projects.

Speaking at the SGV & Co.’s Tax Symposium on Thursday in Makati City, Finance Undersecretary Charlito Martin R. Mendoza said the government needs to drive transformation via digitalization.

He said the government should leverage technology to raise public confidence in the tax system, which has weakened in the wake of the corruption fiasco.

“The most significant driver of this transformation is digitalization,” Mr. Mendoza said. “Technology is not merely a tool for us. It is the cornerstone of achieving transparency and efficiency.”

He also noted that the widening corruption scandal has impacted public spending and the administration’s revenue initiatives.

“We are of course actively aware of the public’s concern regarding instances of financial impropriety and corruption that have recently become the center of national controversy, and how this has cast a shadow on public spending and even our revenue efforts,” Mr. Mendoza said.

“We take full responsibility for ensuring that the hard-earned tax revenue is not kept idle and channelled into concrete government programs and services with zero tolerance for leakage or misuse,” Mr. Mendoza added.

SGV & Co. tax leader Jules E. Riego said the corruption “has to stop, and we need to continue our righteous indignation towards this evil.”

Mr. Riego also noted that SGV is committed to promoting transparency to help regain the public’s confidence in the country’s fiscal system.

“No matter how small our effort may seem, we will not sit in silence… We will pursue transparency, both domestic and foreign, to gain their confidence. Because we believe that transformation is not passive. It demands courage,” he said. — Katherine K. Chan