BIR exceeds 2001 target by P621-M

The Bureau of Internal Revenue (BIR) has exceeded by P621 million its full year revenue collection target of P388 billion, marking the first time the BIR has surpassed its target in the past five years.

This has prompted the Department of Finance (DOF) to increase to P447 billion the BIR’s revenue collection target for this year.

Based on internal revenue sources, the 2001 collection figure surpassed the previous year’s collection by P27.8 billion from the P260-billion full year collections.

BIR documents also showed that the bureau posted a shortage of P6.05-billion from its goal of P145.208-billion for its tri-semester. However, it was able to recover in the following months, boosted by several extraordinary measures such as the amnesty program, compromise and abatement program, and the voluntary assessment program (VAP).

Under the VAP alone, the bureau was able to raise P3.1 billion, higher than its original target of P2.3 billion.

"Surpassing the 2001 collection target was remarkable in view of the poor economic conditions where the gross domestic product (GDP) did not exceed the four-percent level.

The last time the bureau surpassed its target revenue collection was in 1996, when the GDP was in the six-percent level," the same sources noted.

However, they said that hitting the new target of P447 billion this year would be difficult since many delinquent firms had already availed of the amnesty program.,

"We just hope that the finance department reconsiders the new full year target," they added.

Nonetheless, the BIR leadership is reportedly contemplating measures to be able to come close to hitting the target.

Reports indicate that the BIR will launch within the first quarter of 2002 two new district offices to facilitate faster and efficient collection efforts.

Internal Revenue Commissioner Rene G. Banez said the two new district offices would be established in Cebu and Manila.

"The offices allows for proper administration and timely monitoring of taxes from larger taxpayers geographically, including the identified 200 top taxpayers," Banez reportedly said.