13“ CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
Second Regular Session 
1 
S E N A T E  
Introduced by: Sen. Alfredo S. Lim 
EXPLANATORY NOTE 
The Bureau of Internal Revenue (BIR) is the primary revenue raising agency of 
the government, collecting almost eighty percent (80%) of total government revenues. 
Inarguably, the agency’s greatest asset is its pool o f  trained and hardworking personnel. 
Recent developments, however, show that many of the employees in the BIR are leaving 
the service to seek greener pasture in the private sector. Empirical evidence reveals that 
several high and middle management officials of the BIR resign &om office to join large 
accounting firms or IT companies where they receive salaries double or triple the amount 
they were getting in BIR. This excessive turnover of employees, especially among 
lawyers, information technology analysts and programmers, undeniably poses a serious 
problem in tax administration. While reforms have been reduced to modernize and 
improve tax administration, little attention is given to the workforce of the BIR Indeed, it 
is ironic that the BIR employees, who provide the very foundation of tax administration, 
get the least notice in reform programs. 
The current compensation schedule of BIR personnel is totally unacceptable and 
grossly disproportionate to the importance, risk and urgency that their work entails. Faced 
with enormous workloads, these employees are compensated With measly salaries way 
below those earned by their counterparts in the private sector. For instance, a lawyer in 
the BIR normally handling 100 active cases earns a mere Php20,OOO-monthly salary. A 
BIR Database administrator, on the other hand, receives only Php15,OOO every month, 
whereas his counterpart in a private IT lirm earns Php60,OOO-80,000 monthly. 
As a measure to correct this blatant inequity and to fin-ther strengthen the 


employees from Republic Act No. 6758 otherwise known as the Salary Standardization 
Law. With this bill, the salary levels of BIR employees will be placed at par with industry 
standards. Hopellly, the BIR will be able to attract the best human resources of our 
nation to enter the service and encourage its highly-trained personnel to stay in their 
respective positions. 
Needless to state, increase in the salaries in the BIR employees will promote 
efficiency in their performance, improve the operations of the BIR, and lead to a 
significant increase in revenue collections. 
With the aforementioned premises, the approval of this bill is earnestly sought. 


13" CONGRESS OF THE REPUBLIC 
) 
OF THg PHILIPPINES 
1 
Second Regular Session 
1 
S E N A T E  
Introduced by: Sen. Aleedo Lim 
AN ACT 
EXEMPTING THE BUREAU OF INTERNAL REVENUE FROM THE 
COVERAGE OF REPUBLIC ACT NO. 6758, OTHERWISE KNOWN AS THE 
SALARY STANDARDIZATION LAW, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1. SECTION 1. Declaration of Policy. It is the policy of the State to reform tax 
2. administration by hiring and maintaining competent and professional revenue 
3. officials and personnel to enforce the Philippine internal revenue tax system. 
4. Towards this end, the State shall exempt the Bureau of Internal Revenue (BIR) 
5. and its employees h m  the coverage of Republic Act 6758, otherwise known as 
6. Salary Standardization Law. 
7. SECTION 2. Exemption from salary standardization. The BIR and its employ- 
8. ees shall be exempt fiom the coverage of the Salary Standardization Law. 
9. 
10. and formulate its own compensation schedule and position qualification standards 
11. based on a comprehensive job analysis and audit of actual duties and responsibili- 
12. ties of its offices and employees. 
The BIR is hereby authorized to upgrade its human resource component 
13. 
The compensation schedule and position of classification systems imple- 
14. mented pursuant to this Act shall be approved by the Department of Budget and 
15. Management, and shall be subject to periodic review by the BIR, in consultation 
16. with the Department of Finance and the Civil Service Commission, not more than 


1. once every three (3) years, without prejudice to yearly merit reviews or increases 
2. based on performance. 
3. SECTION 3. Implementing Rules and Regulations. The BIR shall promulgate 
4. the Implementing Rules and Regulations for this Act within ninety (90) days &om 
5. approval hereof. 
6, SECTION 4. Appropriafion Clause. The amount necessary to implement this 
7. Act shall be included in the General Appropriation Act of the year following its 
8. enactment into law. 
9. SECTION 5. Repealing Clause. All laws, decrees, issuances, rules and regula- 
10. tions inconsistent with the provisions of this Act are hereby repealed. 
11. SECTION 6. Effecfivjfy Clause. This Act shall take effect within fifteen (15) 
12. days after its publication in at least two (2) newspapers of general circulation. 
Approved.