BIR exceeds April collection goal

MANILA, Philippines - The Bureau of Internal Revenue (BIR) collected P87.1 billion in April, exceeding its tax collection goal of P86.2 billion for the month.

Internal Revenue Commissioner Joel Tan-Torres reported yesterday that the April collections also exceeded the P87 billion recorded in the same period last year.

The BIR chief attributed the agency’s rosy performance to measures that enhance its visibility among taxpayers.

“It’s because of the growing awareness of taxpayers and the impact of the voluntary compliance is now taking effect,” Tan-Torres said.

The BIR chief said that the agency would have exceeded the target by at least P7 billion if not for the losses incurred by businesses because of typhoon Ondoy. 

Losses from tax deductions filed by businesses affected by Ondoy are estimated at P7 billion.

He said the agency also estimates P4 billion in revenue losses from a reduction in corporate income tax to 30 percent from 35 percent as mandated by the Reformed Value Added Tax Law of 2005.

For the first quarter, the BIR collected P173.9 billion, exceeding its P157.7-billion goal by P16.2 billion, data from the agency showed.

Tan-Torres said the BIR’s efforts to improve its tax administration measures have been paying off as seen in the increase in collections.

These measures include a reinvigorated Run After Tax Evaders (RATE) Program, the implementation of its Oplan Kandado Program wherein business establishments with tax deficiencies are temporary padlocked, a lifestyle check on private citizens similar to what is done on public officials and tougher monitoring of bazaars or tiangges especially during the Christmas season.

However, despite the rosy collections in April, the government still breached its budget deficit ceiling of P110.9 billion in the first three months of the year, posting a record budget gap of P134.2 billion during the period.

For the month of May, Tan-Torres said the BIR has a revenue goal of P79.9 billion.

The BIR is tasked to collect P830 billion this year, down from a previous program of P875 billion. The government’s budget deficit, meanwhile, is projected to hit P293 billion this year from the actual P298.5 billion recorded in 2009.