Assessing the feasibility of a forestry revenue collection system

This study aimed to review and assess the existing forestry revenue collection system for forestry related fees and charges of the DENR [Department of Environment and Natural Resources, Quezon City, Philippines] as well as the feasibility of an alternative system through government repository banks. The study involved primary and secondary data gathering and analysis including interviews with 88 key informants from DENR and selected tenure holders and permitees in six regions [in the Philippines]: 1 [Ilocos Region], 3 [Central Luzon], 4B [MIMAROPA, Mindoro Occidental Marinduque, Romblon, Palawan, Mindoro Oriental], 7 [Central Visayas], 11 [Southern Mindoro], and 13 [CARAGA]. The existing forestry revenue collection system requires an order of payment prepared by the concerned DENR field office or unit issued to the permittee or tenure holder who then pays to the designated bill collector of the CENRO or cashier at the regional office who then issue the official receipt. The receipt is submitted to the concerned field office or unit so that the documents/permits applied for are processed and approved. The revenue collections (PhP 500 and above) are remitted to the accredited banks daily or weekly if the CENRO is in a remote area far from any accredited bank. COA [Commission on Audit] audits the revenue collection reports and does random cash counts. Among the issues on the existing revenue collection system are collection inefficiency (low percent actual collection over expected revenues), lack of updated database, budget and plantilla items for personnel with primary task of revenue collection and remittance, inconsistent, unstable and frequently changed policy guidelines, too many permitting requirements and lengthy processing time and lack of sanctions for delinquent payees. Many of the respondents prefer the existing collection system because it is convenient and all documents and payments are made in one office. However, those who prefer the proposed bank payment system lists among its advantages: the removal of additional workload to designated bill collectors; transparency and safety, and prevention of corruption and collusion. The study recommends the following: improvement and mainstreaming of a database management system on forestry revenue collection, allocation of budget and creation of plantilla item for personnel tacked to manage the revenue collection database system, policy to mainstream bank collection of forestry revenues, mechanisms for monitoring and performance evaluation of field offices in revenue collection, incentive system for good performing field offices and good paying clients, clear sanctions and penalties for delinquent clients and erring personnel, and review of existing forestry fees and charges.