BIR retains original P2.33 T collection goal

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has reverted back to its P2.33 trillion collection target for 2019 after adjusting it downwards last April, in line with the implementation of the Lateral Attrition Law.

Under Revenue Memorandum Order (RMO) 29-2019 issued by Internal Revenue commissioner Caesar Dulay last May 27, 2019, the BIR  said its revenue collection goal for 2019 has been returned to the original level of P2.33 trillion, pursuant to an order by the Department of Finance (DOF).

“The Department of Finance, through the memorandum dated May 8, 2019 issued by Assistant Secretary Ma. Teresa Habitan, advised that the basis for evaluation of the Bureau of Internal Revenue’s performance, for purposes of the Attrition Law, shall continue to be P2.33 trillion, as stated in the FY 2019 Budget of Expenditures and Sources of Financing (BESF),” the RMO read. 

“In this regard, and in order to effectively align the monthly goal collections with actual collection performance for purposes of the Attrition Law, this order is being issued to amend Tables 2 to 5F of RMO 18-2019. The adjustments made reflect the increase in the bureau’s revenue collection target, and its impact on all collecting offices,” it added.

Under Republic Act 9335 or the Attrition Act of 2005, officials and employees of the BIR and the Bureau of Customs (BOC) whose revenue collection falls short of target by at least 7.5 percent will be dismissed from service, while those who exceed targets will be rewarded.

Earlier, the BIR had cut its 2019 collection target to P2.271 trillion from the original goal of P2.33 trillion.

Internal Revenue deputy commissioner Marissa Cabreros had said the reduction in the BIR’s target came after the Development Budget Coordination Committee (DBCC) revised its 2019 fiscal program.

She said this was mainly due to President Duterte’s move to veto the general tax amnesty provisions in the recently signed Republic Act 11213 or the Tax Amnesty Law.

To recall, the bicameral conference committee approved the Tax Amnesty Bill in December last year, but it lacked the provisions on the relaxation of the Bank Secrecy Law and the automatic exchange of information, as proposed by the DOF.

Due to the lack of these measures, President Duterte last Feb. 14 signed the law, but line vetoed the provisions on general tax amnesty. This left only the estate tax amnesty and tax amnesty on delinquencies to be implemented.

According to data from the Bureau of the Treasury, the BIR’s total collections in April 2018 rose by 1.2 percent to P235.5 billion from the P232.6 billion recorded in the same month in 2018.

This improved BIR’s year-to-date revenues to P703.7 billion, 7.3 percent higher compared to P655.7 billion as of end-April last year.