THE implementation of the Tax Reform for Acceleration and Inclusion (Train) law should increase government revenues to as much as P17.88 trillion in five years and enable the Duterte administration to cut poverty, the Department of Finance (DOF) said on Tuesday.
DOF data showed the P17.88 trillion would come from taxes, including those from Train, and nontax revenues. This year the government is seen hitting P2.806 trillion; P3.16 trillion in 2019; P3.553 trillion in 2020; P3.956 trillion in 2021; and P4.414 trillion in 2022.
“The increase in [collection] would allow the government to provide better-quality services—infrastructure, education, and health—to improve tne quality of Filipinos now and eliminate poverty in the next generation,” Finance Assistant Secretary Ma. Teresa S. Habitan said via SMS.
The Bureau of Internal Revenue (BIR) is expected to collect P2.039 trillion in 2018; P2.309 in 2019; P2.616 trillion in 2020; P2.942 trillion in 2021; and P3.312 trillion in 2022.
The DOF projected that the Bureau of Customs (BOC) will be able to generate revenues amounting to P581.3 billion in 2018; P662.2 billion in 2019; P748.2 billion in 2020; P826.2 billion in 2021; and P914.8 billion in 2022.
Based on DOF estimates, nontax revenues collected by the government may amount to P166.8 billion in the first year of implementation of the TRAIN; P169 billion in 2019; P167.3 billion in 2020; P166.3 billion in 2011; and P164.8 billion in 2022.
Data from the Bureau of the Treasury showed total government revenues from 2012 to 2016 reached only P9.461 trillion.
Broken down, the government collected P1.534 trillion in 2012; P1.716 trillion in 2013; P1.908 trillion in 2014; P2.108 trillion in 2015; and P2.195 trillion in 2016.
Revenues collected by the BIR reached P6.607 trillion for the period, while the revenues from the BOC reached P1.727 trillion.
The Train was signed by the President and enacted into law last December. It is the first part of the Duterte administration’s Comprehensive Tax Reform Program (CTRP).
Under Package 1 of the CTRP, the government has slashed personal-income tax (PIT) rates while implementing offsetting measures, including lifting some restrictions on value-added tax, increasing excise tax rates on fuel, automobiles and tobacco, among others.
Earlier, the Development Budget Coordination Committee (DBCC) updated the medium-term fiscal targets of the government with regards to revenues, disbursements and the financing of borrowings, in light of the projections in fiscal and economic conditions in the medium term.
The DBCC-approved revenue program for 2018 is pegged at P2.789 trillion, or 16 percent of GDP, rising to P4.388 trillion, or 17.3 perecent of GDP, in 2022.
The first package of TRAIN, which lowers PIT rates while raising excise taxes on numerous products, is projected to contribute a net amount of P82.3 billion this year.
The disbursement target of the government is set at P3.313 trillion for 2018 rising to P5.149 trillion in 2022.