GOCC dividend collections hit P96 billion

MANILA, Philippines — The government collected more than P96 billion from state-run firms as of end-July, nearing the full year target amid the need for more revenues for the country’s development needs.

Dividends from government-owned and controlled corporations (GOCCs) reached P96.45 billion in the first seven months, just P3.55 billion short of the P100-billion goal for the year.

Land Bank of the Philippines topped the list of contributing GOCCs with P32.12 billion. It was followed by the Bangko Sentral ng Pilipinas with P13.23 billion and the Philippine Deposit Insurance Corp. with P10.68 billion.

The Philippine Ports Authority remitted P5.06 billion while the Philippine Amusement and Gaming Corp. contributed P4.6 billion.

Other top GOCCs include the Manila International Airport Authority, Subic Bay Metropolitan Authority, Philippine Charity Sweepstakes Office, Philippine National Oil Company and the National Transmission Corp.

Last April, the Department of Finance (DOF) increased the dividend rate remittance of GOCCs from their net earnings to 75 percent from the minimum of 50 percent.

This happened as the agency looks for ways to increase revenues without new taxes.

The Dividends Law of 1994 mandates all GOCCs to declare and remit at least 50 percent of their annual earnings, as cash, stock or property dividends to the Treasury.

GOCC dividends are sources of non-tax revenues that fund infrastructure and other social and economic programs of the government.

Based on the revised implementing rules and regulations of the law in 2016, the DOF may request GOCCs to remit above the 50 percent minimum dividend rate in the event that GOCCs have excess cash or windfall earnings.

This is provided that viability and purposes for which GOCCs have been established are not impaired.

Increasing the dividend rate aims to promote fiscal discipline and improve revenue generation efforts of the government.