Gov’t revenues to breach P4T by 2022

The national government’s tax and nontax revenues will breach the P4-trillion mark by 2022, thanks to a boost from the additional revenues to be generated from the Duterte administration’s comprehensive tax reform program.

Development Budget Coordination Committee (DBCC) documents showed that the government had programmed to collect P3.1 trillion in total revenues this year; P3.5 trillion next year; P3.9 trillion in 2021; and P4.4 trillion in 2022.

Revenues from taxes alone would reach P2.9 trillion in 2019; P3.3 trillion in 2020; P3.8 trillion in 2021; and P4.2 trillion by 2022.

New revenue measures from tax reform would add to government collections P140.6 billion this year; P195.5 billion next year; P218.7 billion in 2021; and P234.7 billion in 2022.

This year, the incremental revenues of P113.1 billion will come from the Tax Reform for Acceleration and Inclusion (TRAIN) Act being implemented since last year, which included the fuel marking program.

The ongoing estate tax and delinquencies tax amnesties will raise P27.5 billion this year.

Net collections from the TRAIN law would amount to P153.8 billion in 2020; P159.7 billion in 2021; and P162.4 billion by 2022.

Meanwhile, tax package “2 plus”—which included higher excise taxes on cigarettes and alcoholic drinks—was expected to rake in P41.7 billion in additional revenues next year; P58.9 billion in 2021; and P72.3 billion in 2022.

The Bureau of Internal Revenue (BIR)—the country’s biggest tax-collection agency—had been tasked to generate P2.3 trillion from income and other taxes this year; P2.6 trillion next year; P2.9 trillion in 2021; and P3.3 trillion by 2022.

As for the Bureau of Customs, the government wanted its collections of import duties and other taxes to hit P661 billion in 2019; P731.2 billion in 2020; P813.4 billion in 2021; and P900.4 billion in 2022.

Nontax revenues had been programmed by the DBCC to reach P192.2 billion this year; P201.9 billion next year; P196.9 billion in 2021; and P196.2 billion by 2022.

As such, the share of total revenues to gross domestic product  will gradually rise from 16.4 percent this year to 16.7 percent next year, 16.9 percent in 2021, and 17.2 percent in 2022.

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