Better-than-expected collections from fresh taxes on oil, sugary drinks and cigarettes offset the below-target take from motor vehicles and value-added tax (VAT) during the first half, bringing the net revenue under the Tax Reform for Acceleration and Inclusion (TRAIN) Act above-goal.
Data from the Department of Finance (DOF) showed the P55.6 billion in end-June net revenues coming from the implementation of the TRAIN Law exceeded the P52.1-billion target for the six-month period.
The actual collections from January to June jumped 65 percent year-on-year and accounted for 49.2 percent of the full-year goal of P113.1 billion.
Both the bureaus of Customs and Internal Revenue (BIR) exceeded their respective six-month TRAIN revenue targets, hitting P13.8 billion and P41.8 billion, respectively.
DOF data also showed actual foregone revenues from the implementation of lower personal income tax rates under the TRAIN Law amounted to just P52.5 billion in the first half, lower than the projected P64.5 billion “due to better compliance, increase in registered taxpayers, and lower unemployment and underemployment rates.”
First-half collections from higher petroleum excise taxes were above-target at P54.4 billion because of “higher-than-programmed volume of imports, and better compliance in anticipation of fuel-marking program rollout,” the DOF said.
After the BIR issued a revenue regulation that clarified the coverage of the new excise tax on sugar-sweetened beverages, compliance improved since collections surpassed the target by P1.5 billion. The actual take amounted to P24.9 billion, the DOF added. —BEN O. DE VERA