BIR misses target in Oct

MANILA, Philippines - The Bureau of Internal Revenue (BIR) failed to hit its collection target in October.

Latest data released by the Department of Finance showed that the BIR collected a total of P101.8 billion in October, P6.2 billion more than the tax haul in October 2013 but 10.8 percent lower than the agency’s goal of P114.13 billion.

Revenue from BIR operations increased 6.88 percent to P99.64 billion while collections from non-BIR operations declined 8.6 percent to P2.16 billion,.

Large taxpayers contributed P60.03 billion to October collections which was slightly lower  than the collections made in October 2013.

The Large Taxpayer Service represents the country’s largest industries and companies.

Collections by the BIR’s regional offices, meanwhile, jumped 21.08 percent to P39.61 billion.

The BIR aims to collect a total of P1.456 trillion by yearend. It has so far collected P1.1 trillion  in the eight months to October this year, up 10.7 percent from the P993.54 billion collected in the same month last year.

For next year, the BIR is eyeing P1.72 trillion in revenues, 16 percent higher than this year’s target and is equivalent to 12.1 percent of gross domestic product.

The amount is expected to increase further in 2016 to P2.07 trillion.

The higher revenue targets were set by the government due to the need to significantly increase spending on  infrastructure and social services to allow the Philippines to catch up with its neighboring countries and sustain economic growth.

The BIR’s continuing efforts to use third party information such as utility bills data and registration data from other agencies are expected to help expand the taxpayer base.