In a press conference, BIR Commissioner Jose C. Buñag said with a declining interest regime to push up corporate income, the agency could collect more in the coming months.
"It has been indicated in recent weeks by many companies so therefore we hope and expect that the BIR will be able to collect more, particularly in November and maybe partially in December," Buñag said.
"We will be able to meet our November to December targets as well as minimize our shortfalls," he added.
For his part, Finance Secretary Margarito Teves said "we’re hoping that with lower interest rates, corporate income will improve and the BIR will be able to collect more income taxes in November and December."
The BIR and the Bureau of Customs (BOC) both failed to meet their collection targets for the month of October as they only had revenues of P52.1 billion and P18.9 billion, respectively.
"I want to be totally honest, we did not meet our internal target," Buñag told reporters.
Teves said the country’s tax agency failed to meet its target because of declining interest rates that led to lower income from withholding taxes.
"The main reason is some developments like the declining interest rates contributed to the lower income from withholding tax," Buñag pointed out.
National Treasurer Omar T. Cruz further explained that for the first nine months of the year, interest rate from withholding tax of time deposits decreased. This, he said, translates to about P7-billion lower tax revenues.
Buñag further noted that the Treasury’s operation likewise affected tax collection.
Cruz said a decline in tax collection could be due to lower borrowings of the National Government.