BIR collection up 9% to P172 billion in first quarter

MANILA, Philippines - The Bureau of Internal Revenue (BIR) collected P172.3 billion in the first quarter of the year, 9.25 percent higher than the goal for the period of P157.7 billion, preliminary data from the agency showed.

BIR Commissioner Joel Tan-Torres attributed the BIR’s strong performance to enhanced administrative measures.

Tan-Torres said the BIR’s efforts to improve tax administration measures have been paying off as seen in the increase in collections.

These measures include a reinvigorated Run After Tax Evaders (RATE) Program, the implementation of its Oplan Kandado Program wherein business establishments with tax deficiencies are temporary padlocked, a lifestyle check on private citizens similar to what is done on public officials and tougher monitoring of bazaars or tiangges especially during the Christmas season last year.

In March alone, Tan-Torres said the BIR collected a total of P56.7 billion, which is P3.3 billion more than the goal for the month of P53.4 billion.

With the rosy collection figures of the BIR, the government expects to exceed its budget deficit target of P110.942 billion in the first three months of the year.

Earlier, Finance Undersecretary Gil Beltran said the budget gap in the first quarter of the year could hover around P109.9 billion or roughly P1 billion below the ceiling.

But Tan-Torres said that the government would not survive on collection efficiency alone, especially with the implementation of various so-called revenue-eroding measures such as the value-added tax (VAT) exemption on senior citizens and the reduction of corporate income tax from 35 percent to 30 percent which took effect this year.

He also said that in April, tax collections may not be that much because of the losses incurred by businesses from typhoon Ondoy which struck the country last year.

The agency said Ondoy-related losses are already estimated at P7 to P9 billion. The losses stem from the income tax deductions filed by taxpayers whose businesses have been affected by the typhoon.

“With Ondoy losses, the collection (April) might not be that much or it might be lower. That’s what we’re apprehensive about. But we’re hoping for a miracle,” Tan-Torres said.

The BIR has a goal to collect P86.2 billion in April.

The BIR is tasked to collect P830 billion this year, down from a previous program of P875 billion. The government’s budget deficit, meanwhile, is projected to hit P293 billion this year from the actual P298.5 billion recorded in 2009.