BIR admits expecting shortfall of P150B in collection target
The Bureau of Internal Revenue (BIR) on Tuesday, Nov. 26, conceded that it would fall short of its target P2.322 trillion collection as a result of failure to meet targets in collection of excise on fuel and sugary drinks.
At a House committee on ways and means briefing, BIR Assistant Commissioner Alfredo V. Misajon said while end-October tax take went up by 10.1 percent to P1.781 trillion, actual tax take was 4.7 percent below the P1.869-trillion target.
Misajon said from 2016 to 2018, the BIR managed to collect 95-96 percent of its annual targets.
He said while there was still a “fairly good chance” that the 2019 target would be met, the BIR may end up “slightly short.”
Albay Rep. Joey Salceda, committee chair, computed a possible P100-billion shortfall for 2019 but Misajon said it could be higher, P150 billion.
Misajon said the BIR would likely collect 96-97 percent of its 2019 target by yearend.
“But we will be exerting so much effort for the rest of the year to meet our goal,” he said.
“The target is to meet or exceed the [programmed] collection. Hopefully, with our programs we can have substantial take in the two remaining months,” Misajon said.
According to Misajon, one reason the targets were not met was oil players’ increasing gasoline imports.
He said instead of refining gasoline locally, oil firms “shifted to importation” which meant proceeds from excise on these imports were collected by another agency, Bureau of Customs.
Collections from sugar-sweetened beverages were also lower than goal to date, Misajon added.
“Some manufacturers shifted from using high fructose corn syrup [HFCS]—they used local sugar, which had a lower tax rate, in their manufacturing process,” Misajon said.
Under the Tax Reform for Acceleration and Inclusion (TRAIN) Act, the levy for HFCS was double at 12 per liter, while ordinary sugar was only being slapped half of that, P6 per liter.
For 2020, the BIR had been tasked with collecting P2.576 trillion in taxes.
