BIR maintains P3-trillion collection target
THE Bureau of Internal Revenue (BIR) said it will maintain its P3.055-trillion revenue target for this year.
“Despite the figures mentioned there, this was still not yet transmitted to us, that’s why our collection target is still P3 trillion,” BIR Commissioner Romeo D. Lumagui, Jr. told reporters on the sidelines of an event, referring to a report indicating that the target had been downgraded.
The Department of Budget and Management’s Budget of Expenditures and Sources of Financing report released on Monday contained a downgraded BIR collection target of P2.85 trillion for this year.
It also noted that the revenue stamps on vape products have generated around P100 million since all vape manufacturers were ordered to affix stamps to their products.
However, Mr. Lumagui noted the high collection target, tax non-compliance, and shift to online selling platforms as risks to achieving the revenue goal.
“While the tax efficiency of BIR has been increasing, its collection targets remain low because many are shifting from traditional purchases to online, so many transactions there are not covered by the BIR,” he said.
The BIR said it is more confident of hitting its revenue targets next year as it expects more collections from the recently imposed withholding tax on online sellers.
The BIR accounts for nearly 70% of government revenue.
Meanwhile, Finance Secretary Ralph G. Recto noted that the BIR’s deadline extensions for taxpayers affected by the recent typhoon is not expected to have a significant impact on the agency’s collections.
“We thought it best to give people a chance,” he said. “I don’t think it’ll have that big of an impact.”
In the wake of Typhoon Carina, the BIR granted taxpayers in selected regional district offices a six-day extension, or until July 31, to settle their dues.
The BIR missed its midyear collection target by 2.92%, generating only P1.36 trillion out of the P1.4-trillion goal for the period. — Beatriz Marie D. Cruz