Transaction charges in state agencies on track to hit highest level in 15 years

MANILA, Philippines - Transaction charges collected by national government agencies as of October are on track to their highest level on record going back to 2000, indicating a combination of better collection and increased public fees.

From January to October this year, a total of P32.056 billion were collected by state agencies from the public transacting with them, latest data from the Bureau of the Treasury showed.

That was up 17.91 percent from P27.187 billion last year. It is also on track to beating the full-year collections a year ago amounting to P32.77 billion, the biggest in available record for the past 15 years.

For October alone, P5.52 billion in fees and charges were raised, the highest monthly collection during the same period. The Treasury said earlier historical data are not readily available.

“The increase can indicate increase in rates, increase in volume of transactions or better efficiency,” Finance Assistant Secretary Ma. Teresa Habitan said in a text message on Tuesday.

The National Tax Research Center (NTRC), under the Department of Finance, keeps track of government fees and charges through a task force. A check on its website however showed missing data on levels of fees.

The STAR tried to contact NTRC, but was told historical figures were not readily available. No official was also ready to answer queries.

Under Administrative Order 31, President Aquino ordered agency heads to “rationalize” their fees and charges, and “if found necessary, increase such rates and impose new fees and charges.”

The DOF, the Department of Budget and Management, and the National Economic and Development Authority implemented the order through Joint Circular 1-2013 with the NTRC task force monitoring compliance.

The circular, among others, mandated the setting of rates by considering the costs of service provided, the inflation rate, and value of technology and manpower needed for the service.

Emilio Neri Jr., lead economist at the Bank of the Philippine Islands, said the increase in collections could have come more from tightened screws than higher rates.

“From an economic perspective, your economy is slowing so technically speaking, collections should also slow. But it’s not,” Neri said in a phone interview.

“So you can say, that this has to come from improved efficiency in collections given the President’s order to rationalize them,” he added.

He also clarified that increasing rates may not be considered a diversion from Aquino’s election promise of not imposing new taxes.

“You are just tightening screws, just strengthening collections,” Neri said.