BIR collection target for 2011 to top P900 billion, says Tan-Torres

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has been given a collection goal of at least P900 billion for next year.

BIR Commissioner Joel Tan-Torres said next year’s revenue goal will be “above P900 billion” but the agency has yet to announce the final numbers.

A revenue goal of more than P900 billion is also above the P830-billion collection goal for this year.

Tan-Torres is optimistic that the Bureau would be able to raise at least P900 billion next year on the back of enhanced tax measures implemented by the agency.

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 April, the BIR exceeded the P87 billion collected in the same month last year, generating a total of P87.186. billion for the month. The April collections were also above the goal for the month of P86.2 billion.

The BIR chief said that the agency would have exceeded the target by at least P7 billion if not for the losses incurred by businesses because of typhoon Ondoy.

Losses from tax deductions filed by businesses affected by Ondoy are estimated at P7 billion.

He said the agency also estimates P4 billion in revenue losses from a reduction in corporate income tax to 30 percent from 35 percent as mandated by the Reformed Value Added Tax Law of 2005.

For the first quarter, the BIR collected P173.9 billion, exceeding its P157.7-billion goal by P16.2 billion, data from the agency showed.

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

However, despite the rosy collections in April, the government still breached its budget deficit ceiling of P110.9 billion in the first three months of the year, posting a record budget gap of P134.2 billion during the period.

For the month of May, Tan-Torres said the BIR has a revenue goal of P79.9 billion.

The government’s budget deficit, meanwhile, is projected to hit P293 billion this year from the actual P298.5 billion recorded in 2009.