BIR sets P1.46-T target for 2014
MANILA - The Bureau of Internal Revenue is eyeing P1.46 trillion in tax revenues this year, 16.16 percent higher than its 2013 collection goal of P1.25 trillion.
The collection target is based on the 2014 medium term revenue program as of Dec. 18 last year, the BIR said.
Income taxes still accounted for the bulk of the BIR’s revenue goal at P855.77 billion or about 58.6 percent of total.
About P325.74 billion will be sourced from value-added tax, 21.27 percent more than last year’s goal of P268.6 billion.
The excise tax collection goal for this year is P124.17 billion, 8.5 percent of the aggregate target.
The BIR is seen to have increased its tax effort to 10.5 percent or a little over its target of 10.6 percent as a result of the sin tax reform law, which imposed higher taxes on tobacco and alcoholic beverages beginning January last year.
The agency’s intensified campaign against tax evaders was likewise attributed to BIR’s higher tax revenues.
Finance Secretary Cesar Purisima that the BIR still has room for growth in terms of collecting taxes given the billions of pesos in foregone revenues due to tax evasion.
An estimate by various groups puts Philippines’ losses from tax evasion at P380 billion to P450 billion a year.
Non-payment of taxes and under declaration of incomes among self-employed professionals and individuals remain a problem by the government.
The government’s role is to shore up tax effort to a record 16 percent before the end of President Aquino’s term in 2016.
Tax effort measures the government’s efficiency in collecting taxes and is computed by dividing collections into the country’s total economic output.