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BIR, BOC exceed reduced collection goal

The national government’s two main tax agencies have exceeded their reduced collections targets in the first eight-months of the year, but still lower than their performance in the same period last year, the Department of Finance (DOF) said.

Based on the preliminary data submitted to the DOF, the Bureau of Internal Revenue (BIR) and Bureau of Customs raised P1.636 trillion in January to August this year, above the P1.527 trillion reduced target by 7.2 percent.

But the end-August actual tax haul of the BIR and Customs was 18 percent lower compared with P1.863 trillion in the same period last year.

The BIR, the agency responsible for nearly 80 percent of government revenues, collected P1.289 trillion in the first eight-months, exceeding by 8.1 percent its new target of P1.192 trillion for the period.

However, the total collections of the BIR contracted by 11 percent compared with P1.452 trillion in the previous year.

Meanwhile, the Customs generated P347.6 billion in January to August, also higher by 5.1 percent against the agency’s reduced goal of P330.63 billion. Year-on-year, Customs’ collections also declined by 15 percent from P411.2 billion.

In August alone, the BIR and Customs also performed better than expected after they collected P216.65 billion, higher by 39 percent against the P155.27 billion reduced target.

However, the actual revenue haul of the two tax agencies last month was still lower by 16 percent compared with P259.18 billion in the previous year.

The BIR collected P172.06 billion in August, above the P118.2 billion new target by 45.5 percent, but lower by 42 percent from a year ago’s P205.59 billion.

Along with the BIR, Customs also topped its P33.68 billion goal last month by 32 percent to P44.59 billion. Year-on-year, the agency suffered a contraction by 36 percent from P53.18 billion last year.

Earlier, the inter-agency Development Budget Coordination Committee slashed its collection target for the BIR and Customs due to sluggish economy.

For 2020, the government’s two main tax agencies are now tasked to collect P2.192 trillion, lower than their actual revenue haul last year of P2.8 trillion.

The BIR’s goal was reduced by 3 percent to P1.686 trillion from an earlier P1.744 trillion, while Customs’ target is now at P506.15 billion, lower by 6 percent compared with the previous estimate of P542 billion.

Credit belongs to : www.mb.com.ph

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