BIR hikes 2003 collection target by P6-B to P430-B

The Bureau of Internal Revenue (BIR) has raised its collection target for this year by P6 billion to P430 billion from the original P424 billion.

BIR Commissioner Guillermo L. Parayno said the bureau expects tax collections for July to reach P34 billion.

"As of July 11, the BIR already collected P32.4 billion," Parayno said.

"There is much optimism that we can exceed year-end target (especially) if we are able to maintain our 10.4-percent growth rate. If we are able to maintain the growth pace then we will even break P430 billion this year," he added.

Since end-2002, the BIR has managed to improve its tax effort from 9.93 percent to 10.4 percent.

"Just getting back above the 10-percent mark is already an achievement, under the circumstances," he said.

Parayno said the highest tax effort achieved by the government was 12.97 percent in 1997 and it has been trending downhill since then. "Over five years we have lost 3.05 percentage points but this year we expect to keep above 10-percent tax effort to break the decline," he said.

The Department of Finance (DOF) earlier announced that it would be raising government revenues target in view of its success in maintaining a controlled fiscal policy.

For the first six months of the year, revenue collection amounted to P306.3 billion or 15 percent higher than last year’s level.

As a result, the January to June deficit amounted to only P79.6 billion, about P22 billion lower than the programmed deficit for the period.

Likewise, the June deficit was only P4.2 billion, better-than-the expected P15-billion ceiling.