towards Kenneth Christian L. Basilio, Reporting
Bureau of Internal Revenue (BIR) can suffer to achieve that P3.219-Trillion Collection Target This every year lazy government useIng is burdened with all tax receipts, Let it be a great development Dream of tweaking its full-year target.
“The overall performance is low … so there is a need to recycle or redo the entire mission,” Bir Commissioner Romeo D. Lumagui, JR. you have been told Businessworld In a conversation in mixed English with the Philippines. “As things stand, of course Being a difefit’s okay. “
“It’s really challenging to achieve a goal that is not unified.”
While the BIR has strengthened tax collection efforts by strengthening the sector’s capacity for tobacco compliance gaps, Mr. Lumagui said the increase in floods and the decrease in flood spending have weighed on tax collections.
“Even the use of government money was postponed,” he said, as the authorities were arrested in public works and spent amid allegations of political, political,efICIALS and contractors involved in the Multibillion-Peso scheme kickbacks with or without replacementTent Structures for Flood Control.
“There has been a reduction in government spending, and that’s why releases from the Department of Public Works and highways and other government agencies have declined,” he added.
The latest Treasury data shows that BIR collections jumped by 10.88% to P2.32 trillion in the first nine months of the year. However, this was 2.63% lower than the P2.38 Trillion Trillion of Season is January-September.
The BIR, the capital collection agency, needs to collect around P897 billion to reach the P3.219-Trillion annual plan.
“We are under pressure to achieve our goals,” he told lawmakers at a House hearing. “It is important to achieve our goal of budget collection, so that we do not borrow and we are able to support FIsa gift Government plan. “
Mr. Lumagui said there are discussions to reduce the BIR collection target this year.
“I have already written about that, but it is up to us to decide what repairs will be made,” he said in the Philippines. “They’re still assessing the real effects of what’s happening and overall economic performance.”
Philippine Gross Domestic Product grew by 4% in the third quarter, slowing from 5.5% in the second quarter and 5.2% a year ago, amid a string of fraud involving infrastructure projects.
The BIR’s failure to meet its collection target could force the government to cut public spending — perhaps reducing lending at a time when borrowing is needed, said John Paolo R. Rivera, a senior researcher at the Philippine Institute for Development Studies.
“The deficit also underscores how much public affairs like the flood control scandal can wreak havoc on the economy,” he said in a Viber message. “When the community destroys public stables, tax revenues from contractors, suppliers and utilities also fall.”
In a viber message, Rizal Commerce Banking Corp. Economist Michael L. Ricafut said lower collections could reduce the government’s fiscal space for other important spending activities.
Lawmakers should look to come up with measures that can increase tax collections to strengthen government revenue, he added.
Interesting tax collections
Meanwhile, Mr. Lumagui said the BIR collected P250.99 billion in taxes in the first nine months, 1.06% lower than its target of P253.68 billion for the period.
“We have seen an improvement in our excess tax collections, both on Vape products and tobacco products,” said Mr Lumagui. “This … is the result of our aggressive enforcement activities in relation to physical articles.”
Tobacco has long been a challenge for the government as hundreds of millions of pesos in illegal revenue are lost every year due to rampant smuggling.
Mr. Lumagui said the agency had collected about P1 billion in tax returns from tobacco in the first nine months of the year from P84 billion last year.
“That’s the same with vape products,” he added, pointing out that tax collections from electronic cigarettes jumped to P2.055 billion from P446 million to P449 million during the same period.
“We’ve seen a significant increase in this because of our enforcement across the country, in vape products and tobacco products,” said Mr. Lumagui, as the authorities visited thousands of places selling tobacco products to check the compliance of tobacco products to check compliance.
He said that about 377 shops were found to be in violation of the broken tax law, 742,000 packets of illegal traffic and 267.88 million of estimated money estimated from January to September to September this year.
At the same time, the BIR collected P1.19 Trillion from taxes on income and profits during the January-to-September period, 0.75% of the P1.2-Trillion Goal for the period.
The BIR collected P507.88 billion from value-added tax at End-September, 2.16% lower than its P519.08-billion plan for the nine-month period.
