Budget Secretary Florencio B. Abad said the Department of Budget Coordination Committee (DBCC) will review revenue targets due to the lower collection of the Bureau of Internal Revenues (BIR) and the Bureau of Customs (BoC).
Abad, who chairs the DBCC, noted that the BIR had already revised its collection target due to the scheduled implementation of a law that increased the tax-exemption cap for 13th-month pay and other bonuses.
President Aquino signed the law increasing to P80,000—from the previous threshold of P30,000—the maximum year-end bonuses that will not be subject to tax.
The BOC’s collection is also expected to fall due to the prevailing low price of oil in the international market.
“We will review the revenue targets in light of the lower collection from oil imports and the newly enacted tax exemptions,” Abad said in an interview on Tuesday following his speech at Mind Museum in Taguig.
Earlier, the BIR has reduced its collection target for the full year of 2015 by P16.9 billion because of additional tax exemptions granted to taxpayers recently.
The BIR has set its collection target at P1.704 trillion, down from the previous goal of P1.721 trillion for 2015.
The BIR’s lowering of the collection target is due to the increase in allowable de minimis benefits, which are exempt from tax, that may be granted by employers to their employees.
De minimis benefits are privileges given by an employer to employees to promote the workers’ health, company goodwill and efficiency of employees.
Current allowable de minimis benefits include, among others: P750 medical cash allowance to dependents; P1,500 for a 50-kilogram rice subsidy; P4,000 uniform and clothing allowance per year; P10,000 for annual medical allowance; P300 laundry allowance; P10,000 for employees achievement award; P5,000 Christmas gifts and/or anniversary certificate; and 25-percent meal allowance for overtime work and night shift in all regions.
The increase in de minimis benefits will result in foregone revenues but will allow more benefits to workers due to higher take home pay.