Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS

First Regular Session

781
House Bill No.

Introduced by HON, ROZZANO RUFINO B. BIAZON

EXPLANATORY NOTE

This proposal seeks to exempt the Bureau of Customs and the Bureau of Internal
Revenue from the coverage of Republic Act No. 6758, otherwise known as the
"Compensation and Position Classification Act of 1989", or the “Salary Standardization
Law”. It is similar to House Bill No. 4973 filed by House Speaker Pantaleon D. Alvarez and
Representative Dakila Carlo E. Cua entitled “An Act Exempting the Bureau of Internal
Revenue from the Coverage of Republic Act No. 6758, Otherwise Known as the Salary
Standardization Law, As Amended, And For Other Purposes”,

Both the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) are
agencies tasked to collect taxes and enforce tax laws in the country. They have always
registered high in the graft and corruption meter. In order to drastically reduce, if not totally
eliminate graft and corruption in these agencies, a system for better recruitment and retention
of personnel and the standardization of services should thus be employed in both agencies. It
is hoped that this proposed legislation, if passed into law, would further strengthen and
capacitate the officials and personnel of the BOC and the BIR for better, more efficient
revenue collection,

For these reasons, immediate approval of this bill is earnestly sought.

ROZZANO RUFINO B. BIXZON
Representative
Lone District of Muntinlupa City

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS

First Regular Session

House Bill No,__781

Introduced by HON. ROZZANO RUFINO B, BIAZON, '

AN ACT
EXEMPTING THE BUREAU OF CUSTOMS AND THE BUREAU OF INTERNAL
REVENUE FROM THE COVERAGE OF REPUBLIC ACT NO, 6758, OTHERWISE.
KNOWN AS THE SALARY STANDARDIZATION LAW, AS AMENDED, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

TION 1. Declaration of Policy. ~ It is the policy of the State to reform tax
administration and ensure efficient and effective collection of taxes by employing and
maintaining competent and professional revenue and customs officials and personnel to collect
taxes and enforce internal revenue and customs tax laws. Towards this end, the State shall
come up with reasonable, justifiable and appropriate remuneration schemes for the officers
and employees of its revenue generating agencies to enable these agencies to hire competent
and professional public servants and to prevent or deter the granting of unconscionable and
excessive remuneration packages. ’

SEC. 2. Compensation and Classification System for the Bureau of Customs (BOC)
and the Bureau of Internal Revenue (BIR). ~The Department of Finance (DOF), after
conducting a compensation study, shall develop a Compensation and Position Classification
System which shall apply to all officers and employees of the BOC and the BIR whether under
the Salary Standardization Law or exempt therefrom and shall consist of classes of positions
grouped ‘into such categories as the DOF may determine, subject to the approval of the
President.

SEC. 3. Position Titles and Salary Grades. — All positions in the Positions
Classification System, as determine by the DOF and as approved by the President, shall be
allocated to their proper position titles and salary grades in accordance with an Index of
Occupational Services, Position Titles and Salary Grades of the Compensation and Position
Classification System, which shall be prepared by the DOF and approved by the President.

The following principles shall govern the Compensation and Position Classification
System:


(a)__BOC and BIR personnel shall be paid just and equitable wages in accordance
with the principle of equal pay for work of equal value;

(b) . Basic compensation for BOC and BIR personnel shall generally be comparable
with those in the private sector doing comparable work and qualifications and must be i
accordance with prevailing laws on minimum wages. The total compensation provided for
BOC and BIR personnel shall be maintained at a reasonable level with due regard to the
provisions of existing compensation and position classification laws;

(c) The BOC and the BIR Compensation and Position Classification System shall
be determined through a comprehensive analysis and audit of actual duties and responsibilities
of both Bureau's officials and employees; and

(d) A review of government compensation rates, taking into account the
performance of the respective Bureaus, their overall contribution to the national economy, and
the possible erosion in purchasing power due to inflation and other factors, shall be conducted
periodically.

SEC. 4. Incentives to Bureau Officials and Personnel. ~The BOC and the BIR, subject
to the approval of the President, may provide for other incentives not provided under existing,
laws and Civil Service laws.

SEC. 5, Approval of the President. ~The BOC and the BIR Compensation and Position
Classification System implemented pursuant to this Act shall be approved by the President,
and shall be subject to periodic review by the Department of Finance (DOF), in consultation
with the Department of Budget and Management (DBM) and the Civil Service Commission
(CSC), not more than once every three (3) years, without prejudice to yearly merit reviews oP
increases based on performance,

SEC. 6. Non-diminution of Salaries. ~ The BOC and the BIR Compensation and
Position Classification System to be developed and recommended by the DOF, as approved
by the President, shall apply to all positions, on full or part-time basis, now existing or hereafter
created; Provided, That in no case shall there be any diminution in the authorized salaries of
incumbent employees of the BOC and the BIR upon the implementation of the approved BIR
and BOC Compensation and Position Classification System.

SEC. 7. Appropriation Clause. ~The amount necessary to implement this Act shall be
included in the General Appropriations Act of the year following its enactment into law.

SEC. 8. Separability Clause. — If any of the sections or provisions of this Act is held
invalid, all other provisions not affected thereby shall remain valid.

SEC. 9. Repealing Clause. ~ All laws, decrees, issuances, rules and regulations
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 10. Effectivity. ~ This Act shall take effect fifteen (15) days after its complete
publication in at least two (2) newspapers of general circulation.
'

Approved,