MANILA, Philippines - The Bureau of Internal Revenue reported a 22.07 percent hike in tax collections in August to P118.1 billion but this was still not enough to meet its target for the month.
The increase in tax collections was due to sustained economic growth in the first half which translated to higher earnings of corporations and individuals as well as the BIR’s intensified campaign against tax evaders.
Despite missing its target, the BIR has steadily seen a growth in tax collections every month.
The August collection was 0.36 percent or P372 million short of the government’s goal of P118.48 billion.
Part of the shortfall in August was traced to the decline in revenues from non-BIR tax operations.
Collections from non-BIR operations stood at P1.91 billion, which was P 1.15 billion or 37.5 percent below the target.
Collection from BIR operations exceeded the goal for the month by P775 million or 0.67 percent to P116.2 billion. This was 22.39 percent than each year’s figure.
Collections by the BIR’s regional offices reached P38.73 billion, up 26.23 percent from last year.
Revenues from large taxpayers posted a 20.55 percent growth to P77.47 billion. The figure was above the collection goal of P77.06 billion.
The BIR is tasked to collect P1.25 trillion this year or 17.59 percent higher than the previous year’s collections. The large taxpayers unit will account for the big chunk of the target at P768.31 billion and the rest is spread out among revenue regions and districts across the country and also from non-BIR operations.
Bent on running after tax evaders and ramping up tax collections, the BIR has tightened its leash on individual taxpayers, particularly self-employed businessmen and professionals, following the continually high incidence of tax evasion among this sector.
The Department of Finance and the BIR believe that their name and shame campaign and their Run After Tax Evaders program would continue to encourage people to pay the correct taxes.
According to the BIR, more than a fifth of its tax collections represented individual income taxes with the bulk coming from those whose salaries are automatically withheld by their employers.
Data from the Professional Regulation Commission showed that there are about three million registered professionals in the country, 190,000 of which are doctors and lawyers who earn more than salaried workers.