The Bureau of Internal Revenue. AFP FILE PHOTO
The Bureau of Internal Revenue (BIR) exceeded its collections target in the first quarter as the government implemented higher excise tax rates across a number of goods starting January.
In a statement on Wednesday, the country’s biggest revenue agency said that its tax take from January to March totaled P422.6 billion, up 14 percent from P370.6 billion a year ago.
As such, the BIR surpassed its first-quarter goal of collecting P361.8 billion by 16.8 percent.
“Minus the goal from non-BIR Operations (over which the bureau has no control), the surplus is pegged at a higher rate of 18.53 percent,” the BIR said.
As of end-March, the BIR’s regional offices collected P141.7 billion, 12.5-percent higher than the P125.9-billion target.
The Large Taxpayers Service, meanwhile, exceeded its P221.7-billion goal by 21.9 percent, collecting P270.4 billion during the first three months.
In March alone, the BIR’s tax take amounted to P130.3 billion, 11-percent more than a year ago’s P117.4 billion as well as exceeding the target of P125.9 billion.
Finance Secretary Carlos G. Dominguez III last week attributed the surge in the BIR’s first-quarter collections to the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
Signed by President Duterte in December, Republic Act No. 10963 or the TRAIN Law since Jan. 1 this year jacked up or slapped new excise taxes on oil, cigarettes, sugary drinks and vehicles, among other goods, to compensate for the restructured personal income tax regime that raised the tax-exempt cap to an annual salary of P250,000.
The TRAIN Law is expected to add at least P82.3 billion to government revenues this year. /jpv