BIR missed collection target in May

Internal Revenue Commissioner Kim Henares

Tax collections of the Bureau of Internal Revenue (BIR) rose by nearly a fifth in May, but fell short of the official target for the month, data released on Monday showed.

In a statement, the BIR said tax revenues reached P111.9 billion last May, up 18.35 percent from the same month last year. However, this was 2.8-percent less than the government’s target for the month of P115.12 billion.

Despite falling below the target, the government’s tax collections have so far risen every month of the year over 2012 levels. Also last April, BIR collections exceeded the goal for the month by 4.4 percent.

Earlier this year, Internal Revenue Commissioner Kim Henares said tax collections were expected to continue growing at double-digit rates from last year’s levels.

“Aside from the various reforms being instituted by the BIR and the Run After Tax Evaders program, the increase in collection can be attributed also to the intensified tax campaign, including an appeal from (President Aquino) for people to pay the right taxes and a multi-media advertising campaign,” Henares said in a previous statement.

Part of the shortfall in May was traced to the BIR’s tax operations, which, although up 18.7 percent year-on-year, were 1.28-percent below the target of P110.93 billion. Revenues from non-BIR operations totaled at just P2.39 billion, also below the P4.19-billion target. Non-BIR operations refer to the taxes collected by the state from government securities issued by the Bureau of the Treasury.

Collections by the BIR’s regional offices amounted to P36.08 billion, up P7.08 billion or 24.4 percent from the collections made in May 2012.

Collections of the large taxpayers unit amounted to P73.42 billion, 10.17 billion or 16.07-percent more than the collections made a year ago.

The BIR, which is the state’s main revenue-generating agency, is tasked to collect P1.25 trillion in taxes this year, up 17.59 percent over the 2012 performance. This takes into account the P34 billion in additional revenues from higher taxes on alcohol and tobacco products that took effect this year. The BIR’s 2013 goal is based on a gross domestic product (GDP) growth forecast of 6 percent for the year.

The large taxpayers unit will collect bulk of the target at P768.31 billion and the rest is spread out among revenue regions and districts across the country and also from non-BIR operations.

By type of tax, the BIR is expecting to collect P759.19 billion in income taxes, P102.37 billion in excise taxes, P268.63 billion in value-added taxes (VAT), P60.73 billion in percentage taxes and P62.76 billion in other taxes.