MANILA, Philippines - The Bureau of Internal Revenue (BIR) will be tasked to collect P40 billion more next year following the expected passage of the “sin tax” measure before the end of the year.
BIR Commissioner Kim Henares said if Congress approves a sin tax measure that would translate to P40 billion in incremental revenues, the BIR would have to collect P1.278 trillion in 2013 instead of P1.238 trillion.
“If it is approved, our goal next year will increase by P40 billion,” Henares said over the weekend.
Both the House of Representatives and the Senate are expected to reconcile their respective sin tax measures in a bicameral conference committee today.
The House approved in June a measure that would yield P31.35 billion in incremental revenues in the first year of implementation while the Senate approved a measure that would raise P40 billion. Both versions fell below the government’s P60-billion target.
Finance Assistant Secretary Ma. Teresa Habitan, in a separate interview, said the department would continue to push for the Senate version because it provides unitary tax structure and periodic indexation to inflation.
“The House version is our minimum position but the Senate version provides unitary tax structure and periodic indexation,” Habitan said.
Henares said it would be a big challenge to meet the higher goal of P1.278 trillion as the agency is still struggling to meet this year’s target of P1.066 trillion.
However, she said that the agency would definitely collect at least P1 trillion this year, the first time in the bureau’s 108-year history.
Latest data showed that the BIR collected P86.1 billion in taxes in October, nearly meeting its target for the month.
The P86.1 billion in tax revenues in October reflected an increase of P15.6 billion or 22.13 percent more than collections made in the same period last year. The agency had a target to collect P86.18 billion in October or a shortfall of just P79 million.
The October collections brought the January to October revenues to P858.6 billion, which is P101.81 billion or 13.45 percent more than collections made a year ago.