BIR-13: P22.4B collection to come from income taxes

CEBU, Philippines – Income taxes will make up the bulk of this year’s collection of the Bureau of Internal Revenue-13 in Cebu City this year.

Official data showed that BIR-13 is expected to rake in P22.4 billion in income taxes, which is more than half of the revenue region's P36.4-billion total goal this year.

BIR-13 also has a target to collect P10.2 billion in value-added taxes (VAT), P1.3 billion in percentage taxes, P2.4 billion in other taxes and P8.97 million in excise taxes.

BIR, the government's main revenue earner, said that revenue targets are set based on economic indicators and assumptions this year and collection performance the previous year.

Percentage tax is a business tax imposed on persons or entities/transactions. VAT is a form of sales tax imposed on the sale, barter, exchange or lease of goods, services or properties in the Philippines and on importation of goods into the country.

Excise tax is imposed on the production, sale or consumption of commodities such as alcohol, tobacco, petroleum, miscellaneous articles and mineral goods.

On the other hand, income tax is imposed on a person's income or profits arising from property, practice of profession or a business.

It can be remembered that last year, some business and industry leaders in Cebu expressed their support to trim down the country's income tax rates, which are deemed to be one of the highest in Southeast Asia.

But President Aquino had already rejected the proposal to lower income tax rates.

In the Philippines the highest tax rate for corporations is 30 percent while for individuals is 32 percent. Currently the country's income tax rates range from 32 percent for workers earning at least P500,000 per year to 5 percent for those earning at least P10,000 a year. Tax rates were last set in 1997.

Meanwhile, BIR-13 collected P25.8 billion last year, exceeding its target by 1.72 percent. BIR-13 has five revenue district offices: Cebu City North; Cebu City South; Talisay City; Mandaue City; and Tagbilaran City in Bohol. (FREEMAN)