BIR expects to beat collection target for May

MANILA, Philippines - The Bureau of Internal Revenue (BIR), expects to beat its P79.9-billion target for May on the back of the continued enhancement in tax administration measures.

The BIR has collected P43.3 billion from May 1 to 25, still P36.6-billion short of the target for the month but BIR Commissioner Joel Tan-Torres said the latest collection figures are a marked improvement from revenues generated in the same period last year.

From May 1 to 25, 2009, the BIR collected only P35.7 billion. Actual collections in May 2009 amounted to P73.3 billion.

“With this cushion from the corresponding period last year, we are quite optimistic that we’ll be able to hit our May target,” Tan-Torres told reporters yesterday.

He attributed the improvement in tax collections to the implementation of the government’s tax program since last year.

The implementation of the BIR’s Strategy Map and Making the Public Know campaign helped increase taxpayers’ awareness on their obligations to the agency, Tan-Torres said.

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 last year.

From January to April this year, the BIR collected P265.1 billion as against the program for the period of P243.9 billion.

BIR collections make up for about 70 percent of government revenues, making the agency’s tax-take very crucial in fixing the country’s fragile fiscal position.

The government hopes to contain the budget deficit at P293 billion this year, narrower than the P298 billion recorded last year.

From January to April, the government incurred a budget deficit of P131.6 billion, narrower than the deficit ceiling for the period of P145.2 billion but higher than the deficit in the same period last year of P111.8 billion.