The Bureau of Internal Revenue (BIR) underperformed in the first four months, but expressed confidence on Wednesday it could hit its full-year collection goal of P1.829 trillion.
Revenue officials said the BIR, the main collection arm of the government, collected only P600 billion but managed to post only P558.074 billion, or P41.926 billion short of the target.
According to data from the Bureau of the Treasury (BTr), revenue collection in January this year amounted to P147.393 billion, P105.862 billion in February, P117.149 billion in March, and in April P187.670 billion, its highest to date.
The BIR is supposed to collect at least P152 billion each month to hit its full-year collection goal of P1.829 trillion.
“No, we are a little bit off [track]. That is why we are working triple time to be on track with our targets. There is no revising of the targets. This is set by the National Economic and Development Authority, the DBM [Department of Budget and Management] and the finance secretary,” said BIR Commissioner Caesar R. Dulay at the sidelines of the Integrity Forum held at the Makati Shangri-La Hotel on Wednesday.
Dulay said the bureau’s April collection performance was not maximized despite it being a tax-filing season due to the number of holidays during the month, including the Asean meetings. “We were hit by holidays during the month of April. I think it started in April 25 and 26, then it spilled over to the following months. That is probably one of the reasons. I am still working and reading with my operations group,” he added.
Year-on-year, the revenue collection of the BIR grew by 5.3 percent, compared to the P117.656 billion in April 2016. From January to April in 2016, the bureau collected P507.828 billion.
“If you recall, April 2016 was the peak of the election campaign period and there was a lot of spending. I think the collection of the BIR rode on that, the massive election spending at that time,” he said.
He added the BIR is currently taking steps to ensure it meets its target for the year, pointing out it is improving its enforcement activities and eyeing collections from pending tax cases at the Court of Tax Appeals (CTA).
“We are reviewing our operations and we are going back to our goals and we are stepping up on law enforcement. That is important. We got letters of authority [LOA] pending. We want collection on pending cases with the CTA. I am encouraging mediation and settlement of these tax cases so we can collect,” Dulay added.
Other measures include undertaking a comprehensive taxpayer profiling and industry benchmarking; reviving suspension of businesses for noncompliance with value-added tax requirements; updating zonal values; and expanding the Compromise Settlement Program for large taxpayers, among others.
The BIR’s 2017 collection target is 12.9 percent higher compared to last year’s downward-adjusted target of P1.62 trillion. The revenue collection last year fell short by 3 percent to P1.567 trillion.
“Remember that our goal is not just to increase revenue collection, but to help those in the fringes of society. Improving their lives will ensure inclusive growth, something that will benefit not just the poor, but also those of you whose businesses expand as the economy expands. Taxes can be a tool for inclusivity,” Vice President Maria Leonor G. Robredo said in a speech at the same event.