BOC expects to collect P1 billion from abatement plan

MANILA, Philippines - The Bureau of Customs (BOC) expects to collect at least P1 billion from an abatement program to be implemented up to end-December or early next year, Customs Commissioner Angelito Alvarez said over the weekend.

As such, Alvarez is calling on importers who may have been remiss on the payment of their duties to come out in the open, saying that this is their chance to come forward and settle their obligations. “It’s a voluntary disclosure program,” Alvarez said.

Under the program, Customs will waive surcharges on unsettled tax obligations and would only focus on the basic amount owed by the importer.

He said this is better than not coming forward and constantly dodging Customs officials.

“I think easily we can collect P1 billion from this program,” Alvarez said.

The BOC is stepping up efforts to improve collections on the back of a problematic revenue stream.

It expects to miss again its October collection target, citing again the zero duties on oil and motor vehicles as the reasons for its underperformance.

He said the imposition of zero duties on oil, motor vehicles and wheat has consistently stumped collections.

Most oil imports and motor vehicles entering the Philippines go through the ports of Limay and Bataan, making them the most affected among the ports when duties on oil and vehicles are slashed.

The BOC aims to collect P27.14 billion in October with a cash portion of P23.8 billion.

The BOC also missed its cash goal in September with a collection of only P19.652 billion against a target of P23.35 billion.

Despite the lackluster performance in September and possibly in October, Alvarez is optimistic that the BOC would meet its cash collection target for the year of P241 billion.

Its total revenue goal for the year is P280 billion comprising of cash and non-cash from the tax expenditure fund (TEF ), a form of subsidy that government agencies use for their import needs.

Alvarez saidbusiness usually picks up in November-Decemger although he said there is nothing that the BOC can do for now with the imposition of zero duties on oil, motor vehicles and wheat because these are part of the government’s trade agreements with other countries.

The Aquino administration is now under heavy pressure to contain the budget gap for the full year at P325 billion.

As of end-September, the budget deficit has widened to P259.8 billion or 9.4 percent above the P237.5 billion recorded a year earlier.