BIR collection breached P2 trillion in 2019 but failed to hit goal

The Bureau of Internal Revenue’s (BIR) tax take rose by a tenth and breached the P2-trillion mark for the first time in 2019, but still fell short of goal, the Department of Finance (DOF) said.

In a statement on Monday (Jan. 13), the DOF said preliminary data showed the BIR collected P2.17 trillion in taxes in 2019, up 10.7 percent from P1.96 trillion in 2018.

However, actual BIR collections were below the P2.33-trillion target for 2019.

As early as last November, the BIR already conceded it cannot achieve its 2019 revenue target due to shortfalls in collections from taxes slapped on oil products and sugar-sweetened beverages.

The BIR and Bureau of Customs together had a tax haul of P2.8 trillion in 2019.

Last week, the BOC reported that it collected P630.6 billion in import duties and other taxes in 2019, up 6.3 percent compared with 2018 but below the P661-billion goal.

Even as the two agencies failed to meet their revenue targets, the DOF quoted Finance Secretary Carlos G. Dominguez III as saying that the BOC and the BIR “did a wonderful job” in 2019.

For instance, Dominguez acknowledged the BIR’s efforts to collect corporate as well as personal income taxes from “errant” Philippine online gaming operators (Pogo) service providers and their foreign—mostly Chinese—workers.

The DOF said Dominguez expected the BIR and BOC to “improve their performance even more given the Philippines’ vibrant economic outlook in 2020.”

Revenue collection is getting help form the fuel marking program that would be in full implementation in 2020.

Increased taxes on so-called sin products, like tobacco and e-cigarettes, are also expected to bring in additional revenue.

The third tranche of scheduled increases in oil excise under the Tax Reform for Acceleration and Inclusion (TRAIN) Act took effect on Jan. 1, 2020.

Pending President Duterte’s signature is the bill that will further jack up tax rates on alcoholic drinks, heated tobacco and vapes.

Internal Revenue Deputy Commissioner Arnel Guballa told the Inquirer Monday that the BIR had been tasked with collecting P2.5 trillion in 2020.

To achieve this, the BIR identified 20 priority programs and projects to better collect taxes.

Among these are Run After Tax Evaders (Rate), Oplan Kandado, tighter audit and investigation, arrears management program, tax education campaign, e-invoicing and a new BIR national headquarters

Edited by TSB