MANILA, Philippines – Transaction charges collected by national government agencies are on track to hitting their highest level as of October, indicating a combination of better collection and increased public fees.
Collections by government agencies from fees and charges reached P32.056 billion in the first 10 months, up nearly 18 percent from P27.18 billion from a year ago, latest data from the Bureau of the Treasury showed.
The figure was also on track to beating the 2014 collections of P32.770 billion, which was the biggest in available record for the past 15 years.
For October alone, P5.520 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 yesterday.
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.
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 President Aquino’s election promise of not imposing new taxes.