MANILA, Philippines - Revenues from the controversial reformed value added tax (RVAT) exceeded the P100-billion mark to hit P121.138 billion in 2008, latest data from the Department of Finance (DOF) showed.
Of the amount, the Bureau of Customs (BOC) collected P73.850 billion while the Bureau of Internal Revenue (BIR) generated P47.288 billion.
Finance officials attributed the higher RVAT collections to the increase in VAT rate, higher oil prices and VAT-related reforms.
The increase in the VAT rate to 12 percent from 10 percent raised a total of P39.278 billion, lower than the expected revenues of P45.375 billion.
Similarly, the lifting of VAT exemptions for certain products translated in earnings of P78.553 billion, also lower than the expected revenues of P89 billion.
In July last year, the price of oil in the world market reached a record high of $147.27 per barrel.
The RVAT law, passed in 2005, raised the sales tax to 12 percent from 10 percent and lifted the exemptions on oil and petroleum products.
The new VAT law also increased the minimum corporate income tax to 35 percent from 32 percent, but this has been reduced to 30 percent this year.
In 2007, the DOF’s VAT collections amounted to P88.93 billion or slightly above the target of P88.88 billion. The 2007 figures were also P12.04 billion higher than the 2006 collection of P76.88 billion, data also showed.
In 2006, RVAT collections amounted to P76.888 billion, also higher than the programmed revenues for that period of P75.79 billion.
However, for 2009 the government does not expect high revenues from RVAT due to easing oil prices. From a peak of $147.27 per barrel in July, oil prices have steadily been going down.
The National Government is counting on the new VAT law to boost state coffers and sustain the government’s subsidy program for the poor.
Revenues from RVAT are being used for social services and infrastructure projects, government officials have said.