THE Bureau of Internal Revenue (BIR) and the Bureau of Customs—the main collection agencies of the government—are targeting to collect P3.307 trillion next year, data from the Development Budget Coordination Committee (DBCC) showed.
Based on the DBCC’s medium-term program as of July 18, the BIR’s goal for 2020 is pegged at P2.576 trillion. The figure is 13.4 percent higher than the bureau’s target of P2.271 trillion for 2019.
As for the BOC, its target is to collect P731 billion, 10.6 percent higher than this year’s goal of P661 billion.
The DBCC figures for next year took into account the implementation of the fuel marking system, the approval of Package 1B sans the electronic invoicing system and the increase in motor vehicle users charge, as well as Package 2 Plus sans the increases in the mining taxes under the Comprehensive Tax Reform Program (CTRP).
The total tax revenues for 2020 are expected to reach P3.332 trillion, 12.8 percent higher than the P2.995 trillion projected for this year. This will translate to a tax effort of 15.7 percent of GDP.
Total revenues of the government for 2020 are projected to hit P3.536 trillion, 12 percent higher than the P3.149 trillion
Last month, the DBCC said revenue collection for 2020 is projected to rise to P3.54 trillion, equivalent to 16.7 percent of the country’s gross domestic product (GDP), while disbursements are programmed at P4.21 trillion, or 19.9 percent of GDP.
Revenue and disbursements are estimated to rise to P4.42 trillion or 17.2 percent of GDP, and P5.24 trillion or 20.4 percent of GDP, respectively, by 2022.
The passage of the remaining CTRP packages is expected to help ensure a reliable revenue base and boost economic growth.
“Completing the passage of the remaining tranches of the tax reform will ensure a steady revenue flow and equitable sharing of contributions for the government’s social and infrastructure programs while securing fiscal stability long into the future,” the DBCC said.
Given the revenue and disbursement program adopted by the DBCC, the deficit target will be maintained at 3.2 percent of GDP from 2019 to 2022 to sustain the government’s investments in infrastructure and human capital development.
The GDP growth target was maintained at 6 to 7 percent in 2019, 6.5 to 7.5 percent in 2020, and 7 to 8 percent in 2021 and 2022.
Image credits: Nonie Reyes