BIR collections breach P1T mark

The Bureau of Internal Revenue on Wednesday said its collections broke past the P1-trillion mark last Dec. 17.

This means that, based on preliminary data, the BIR collected at least P30.7 billion from Dec. 1 to 17.

Earlier this week, the agency reported a yield of P969.34 billion in the 11 months to November.

“Considering projections of collections from other sources still unaccounted for as of [Dec. 17], the BIR could have hit the P1-trillion mark much earlier,” the BIR said in a statement.

This would be the first time the BIR collected P1 trillion. Still, it is short of its P1.066-trillion target for the entire year.

The P31 billion collected in two and a half weeks was just a third of the P96.8 billion the BIR would need to meet its full-year goal.

In an interview last Monday, Internal Revenue Commissioner Kim Henares said that the agency is committed to achieving the target, with the staff “work(ing) very hard until the last day” of the year.

Based on data from the Bureau of Treasury, BIR’s collection for December peaked at P82.4 billion in 2010.

Even then, the BIR has better prospects next year as President Aquino is expected to sign a new law reforming the country’s tax scheme on tobacco products and alcoholic beverages.

With the new law in effect, the BIR expects to collect an additional P34 billion in the first year alone as well as P184.31 billion in the next four years.

This translates to a yearly average of P43 billion in incremental revenues from excise tax on the so-called sin products.

The amount is less than the P60 billion Malacañang originally wanted, and more than the P40 billion state economic managers said was the minimum amount for the country to achieve its goals.

Originally posted at 2:41 pm | Wednesday, December 19, 2012