Gov’t sets revenue target for 2015

MANILA, Philippines - The government expects to generate revenues of P2.34 trillion next year which will primarily be used to fund budgetary requirements.

Documents from the Bureau of Treasury showed that the 2015 revenue target represents a 15.8 percent increase over this year’s goal and is equivalent to 16.5 percent of gross domestic product (GDP).

Tax revenues will account for P2.19 trillion or 93.9 percent of the total projected revenues for next year. The remainder will come from the collections remitted to the Bureau of the Treasury such as BTR’s own income (P37.3 billion), fees and charges (P34.4 billion), NG shares and dividends (P20.7 billion) and the sale of government assets (P2 billion).

Collections by the Bureau of Internal Revenue (BIR) are forecast to grow by 18.3 percent to P1.72 trillion next year or 12.1 percent of GDP. The expected hike in BIR collections was anchored on the agency’s aggressive campaign against tax evasion.

The BIR continues to aggressively plug tax collection loopholes and file criminal complaints against those found to have evaded tax payments or under-declared earnings or sales to avoid paying a bigger amount of tax.

As of the end of June, the BIR had filed a total of 253 cases with the Department of Justice under the Run After Tax Evaders (RATE) program.

The government also sees higher collections from the Bureau of Customs amid continued pursuit of reforms. The BOC is seen to generate revenues of P456.5 billion next year, which is equivalent to 3.2 percent of GDP.

“The organizational reforms that have been institutionalized at BOC, the intensified anti-smuggling campaign, and the trade facilitation systems that have been installed are clearly breathing new life and energy into the agency,” the DBM said.

The Aquino administration aims to further trim the ratio of the country’s debt to GDP to 45.6 percent next year through improved revenue collections and better management of funds

 The debt-to-GDP ratio, which peaked at 78.1 percent during the Asian currency crisis, stood at 49.2 percent in 2013 from 51.5 percent a year earlier.