MANILA, Philippines - The government expects businesses to recover next year along with the global economy which fiscal authorities said would boost the tax take of the Bureau of Internal Revenue (BIR), the state’s main revenue earner.
The BIR expects a 10.4 percent increase in its income tax collection in 2010 to P519.372 billion from the programmed P470.336 billion this year, according to the Budget of Expenditures and Sources of Financing (BESF) submitted by the government to Congress last week.
Of the total amount, the government expects to collect P309.639 billion in corporate income taxes from all companies and private enterprises next year. This is P36.904 billion higher than the P272.735 billion programmed for 2009.
The BIR, meanwhile, expects to collect P156.961 billion in income taxes next year or P17.886 billion more than the programmed income tax revenues of P139.075 billion this year.
Collections from other forms of income taxes including capital gains tax, however, are expected to drop to P52.772 billion in 2010 from the programmed P58.526 billion for the year.
BIR officials said the expected global economic recovery next year would improve business conditions and translate to higher tax collections for the agency.
In the first semester of the year, the BIR failed to hit its income tax collection goal for the period.
The BIR generated only P217.5 billion during the first six months of the year or P11.5 billion short of the income tax collection target of P229.06 billion.
Compared to income tax collections in 2008 of P239.2 billion, the latest figure is lower by P21.742 billion or a drop of 9.09 percent.
Of the P217.5 billion income tax collected in the first semester, corporate income tax revenues amounted to P125.5 billion or P4.6 billion below the goal of P130.2 billion.
Individual income tax collections also fell below the target of P72.056 billion, hitting only P67.5 billion or P4.5 billion short of the target.
Other income tax collections also fell below the goal of P26.8 billion, reaching only P24.4 billion or a deficiency of P2.3 billion.
Officials said the global economic turmoil has affected businesses which, in turn, dampened tax collections.
The BIR is tasked to collect P798.5 billion for 2009 and P875.08 billion next year.