Highest monthly BIR collection in 100 years: P53.02 B

The Bureau of Internal Revenue (BIR) said yesterday it has posted its highest collection for a single month in its nearly 100 years of existence, with a preliminary collection of P53.02 billion last April.

The BIR, established in August 1904, said while the record-setting collection fell short of the P56.3 billion target for the month, it was nevertheless P2.63 billion more than the P50.39 billion collection recorded for the same period last year.

With this, the BIR’s collection from January to April this year comes to P151.99 billion, P11.69 billion higher than the amount collected for the same period in 2003. This translates to an 8.33 percent growth in the agency’s collection for this year compared to the 7.97 growth registered the preceding year.

The BIR’s monthly collection varies depending on the month, with February and September the leanest in the past three years. The agency’s peak collection usually occurs in April and May.

According to the BIR, one of the major factors in its undercollection for April 2004 is the lower-than-forecast sales of treasury bills. Officials explained that the Bureau of Treasury rejected many tenders and generally accepted bids at lower rates this year, resulting in a P700-million reduction in taxes collected by the BIR for the first four months of 2004.

The BIR also noted that its collection remains "troubled" after oil firms turned to importing finished products instead of sourcing from local refineries and that motor vehicles sold in the local market now are mostly imports.

"Accordingly, taxes collected by the BIR from these manufacturing activities fell," officials explained.

However, the BIR said its "biggest worry" is the lower aggregate taxes paid by some 540 large taxpayers in April. To address this problem, BIR Commissioner Guillermo Parayno Jr. ordered a review of the payments made by these taxpayers, who will be asked to explain their side before the agency initiates any legal action against them.

Meanwhile, with the elections over, the BIR lifted its self-imposed moratorium on tax compliance verification drives, inventory stocktakings, audits and other operations to enforce tax laws.

Despite the shortfall in April, BIR officials remain confident they will be able to meet the cumulative collection target in the next two months.

The BIR expects income tax collections to improve this month, noting the favorable results of its Centennial Taxpayers Recognition Program (CTRP), under which taxpayers are encouraged to improve payment on their income tax by at least 25 percent in April and May. In exchange, the BIR promises these taxpayers the benefit of last priority in audit for all their 2003 tax payments.

The BIR, which considers the CTRP as one of its major revenue-generating programs, will declare the centennial taxpayer awardees in August, during the agency’s centennial celebration.

"Taxpayers maintained a wait-and-see attitude in April but (they) are expected to participate this month," the BIR said.