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FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
CJ 
FEg -rj [’ .i :1:2 
Second Regular Session 
) 
S E N A T E  
1 
Introduced by Senator Lacson 
EXPLANATORY NOTE 
The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) are 
the two agencies of the government in the forefront of collecting revenue direly 
needed in its developmental endeavors. 
It is but imperative on the government’s 
part to provide these two agencies the pertinent tools to fulfill their mandates. 
Under Section 2 of the Tax Reform Act of 1997, as amended, it is provided: 
“SEC. 2. 
Powers and Duties of the Bureau of 
Internal Revenue. - 
The Bureau of Internal Revenue shall 
be under the control and supervision of the Department of 
Finance and its powers and duties shall comprehend the 
assessment and collection of all national internal revenue 
taxes, fees, and charges, and the enforcement of all 
forfeitures, penalties, and fines connected therewith, 
including the execution of judgments in all cases decided in 
its favor by the Court of 
Tax Appeals and the ordinary 
courts. The Bureau shall give effect to and administer the 
supervisory and police powers conferred to it by this Code or 
other laws.” 
The BOC on the other hand is given the following functions under Section 602 
of the Tariff and Customs Code: 
“SEC. 602. Functions of the Bureau. - The general duties, powers and 
jurisdiction of the bureau shall include: 
a. The assessment and collection of the lawful revenues 
from imported articles and all other articles and all other 
dues, fees, charges, fines and penalties accruing under 
the tariff and customs laws; 
b. The prevention and suppression of smuggling and other 
frauds upon the customs; 
c. The supervision and control over the entrance and 
clearance of vessels and aircraft engaged in foreign 
commerce; 
d. The enforcement of the tariff and customs laws and all 
other laws, rules and regulations relating to the tariff and 
customs administration; 
e. The supervision and control over the handling of foreign 
mails arriving in the Philippines, for the purpose of the 
collection of the lawful duty on the dutiable articles thus 
imported and the prevention of smuggling through the 
medium of such mails; 
f. Supervise and control all import and export cargoes, 
landed or stored in piers, airports, terminal facilities, 


including container yards and freight stations, for the 
protection of government revenue; 
g. Exercise exclusive original jurisdiction over seizure and 
forfeiture cases under the tariff and customs laws.” 
It is the object of this bill to exempt from the coverage of the Compensation 
and Position Classification Act of 1989 (RA 6758), the officers and employees of the 
BOC and BIR. 
Under the Salary Standardization Law (SSL), salaries of most 
government employees are fixed or leveled. 
In the past, Congress has exempted from the coverage of the SSL some 
government financial institutions such as Government Service Insurance System 
(GSIS), Social Security System (SSS), Bangko Sentral ng Pilipinas (BSP), Land Bank 
of the Philippines (LBP), Corporate BCDA, and Development Bank of the Philippines 
(DBP). 
There have been clamors that the BIR and BOC be removed from its coverage 
since these two agencies perform vital functions relative to the revenue raising powers 
of the government. It is envisioned that with the enactment of this measure, graft and 
corruption would be minimized, if not totally eliminated. Moreover, said move would 
be an added impetus for them to perform their duties properly, and hopefully meet 
their respective target collections. 
It is for these reasons that approval of this bill is earnestly requested. 
P &k 
F 0 .LACSON 
enator 
W 


FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
1 
3 FEB -9 
F t; :l'2 
S E N A T E  
Introduced by Senator Lacson 
AN ACT 
TO FURTHER STRENGTHEN THE REVENUE RAISING POWERS OF THE 
BUREAU OF INTERNAL REVENUE (BIR) AND THE BUREAU OF 
CUSTOMS 
(BOC), BY EXEMPTING THEM FROM THE COVERAGE OF 
THE COMPENSATION AND POSITION CLASSIFICATION ACT OF 1989 
(RA 6758), AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled 
SECTION 1. 
The Bureau of Internal Revenue (BIR) and the Bureau of 
Customs (BOC), are hereby exempted from the coverage of Republic Act No. 6758, 
otherwise known as An Act Prescribing A Revised Compensation And Position 
Classification System In The Government And For Other Purposes. 
SEC. 2. The implementing rules and regulations to effectively implement the 
provision of this Act shall be issued 
and promulgated by the Secretary of Finance 
in consultation with the Commissioner 
of Internal Revenue and Commissioner of 
Customs, not later than ninety (90) days after the approval of this Act which shall be 
published in a national newspaper of general circulation. 
SEC. 3. If for any reason, any provision of this Act or the rules and regulations 
issued to implement the same, is held invalid or unconstitutional, the remaining 
provisions not affected thereby shall continue to be in full force and effect. 
SEC. 4. All laws, decrees, executive orders, or rules and regulations or parts 
thereof inconsistent with or contrary to the provisions of this Act are hereby repealed, 
amended or modified accordingly. 
SEC. 5. This Act shall take effect fifteen (15) days after the completion of its 
publication in the Official Gazette or in at least two (2) national newspapers of general 
circulation. 
Approved,