BIR sees April collection surpassing target

MANILA, Philippines - The Bureau of Internal Revenue (BIR) is expected to beat for the fifth straight month since December 2009 its monthly collection goal in April due to enhanced tax administration.

“As early as now, I anticipate that the collections for April will again exceed our expectations. This performance, with the remarkable start that we had since December last year, where we consistently exceeded our collection targets until March, is an indication of what we, as a united team can do,” BIR Commissioner Joel Tan-Torres said last week. 

Tan-Torres took over the helm of the BIR in November last year following the resignation of Sixto Esquivias IV. Esquivias tendered his resignation that month, citing health reasons.

The BIR has a goal to collect P86.2 billion in April and Tan-Torres said with the measures put in place by the agency since last year, this is likely to be achieved.

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 the first quarter of the year, the BIR collected P172.3 billion or 9.25 percent above the goal for the period of P157.7 billion, preliminary data from the agency showed.

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 the first quarter budget deficit to stay below the P110.942-billion ceiling.

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 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.

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

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.