BIR collection up 8.33% in 4 mos

The Bureau of Internal Revenue (BIR) increased its revenue collection by P11.69 billion to P151.99 billion for the period covering January to April 2004 as against the same period last year.

The BIR said the growth rate of the 2004 collection remains at a high 8.33 percent compared to the 7.97-percent growth recorded last year.

The BIR, however, failed to meet its collection target for April when it posted only P53.02 billion compared to the projected P56.3 billion for the month.

One of the major causes of under-collection this year, the BIR said, is the lower than forecast sales of Treasury bills. In the first few months of the year, the Bureau of Treasury (BTr) rejected many tenders and generally accepted bids at lower rates, resulting in about P700 million lower taxes collected by BIR from these for the four-month period.

The shift in the sourcing of petroleum products from local refineries to imports also affected the BIR’s collection for the first four months of the year.

Moreover, the BIR noted that motor vehicles sold in the domestic market now come mostly from imports. Accordingly, taxes collected by the BIR from these manufacturing activities also declined.

One of the biggest concerns, of the BIR is the lower aggregate taxes of some 540 large taxpayers this April.

BIR Commissioner Guillermo Parayno has reportedly ordered a thorough review of the April payments made by these 540 large taxpayers.

The heads of these large taxpayers, however, will be given an opportunity to explain their lower payments before enforcement action is undertaken. With the elections, the Bureau lifted its self-imposed moratorium on tax compliance verification drives, inventory stocktakings, audits and other enforcement operations.

The BIR remains confident that it will be able to meet the cumulative target in the next couple of months.

It expects income tax collections to improve this May as one of the BIR’s major revenue generating activities, the Centennial Taxpayers Recognition Program (CTRP) continues to generate participation.

The CTRP encourages taxpayers to greatly improve payments from income taxes by at least 25 percent in April and May in exchange for the benefit of last priority in audit for all 2003 tax payments.