RP tax take to grow 10.4% in 2010: Finance dept
abs-cbnNEWS.com | 07/02/2009 8:05 PM
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The Finance Department is expecting the government's tax collections to improve by 10.4 percent next year as the economy begins to recover from the global slowdown.
Data from the Finance Department showed that the tax take of the government would reach P1.195 trillion in 2010, P113 billion higher than this year's programmed tax collection of P1.082 trillion.
This translates to a higher tax-to-GDP (gross domestic product) ratio of 14.3 percent compared to this year's projected 13.9 percent.
The Bureau of Internal Revenue (BIR) is expected to collect P875.1 billion next year, 9.6 percent higher than the projected P798.5 billion for 2009. On the other hand, the collection target of the Bureau of Customs (BOC) is seen to grow 13.2 percent to P309.5 billion in 2010 from the projected P273.3 billion this year.
The Finance Department said it is banking on higher import growth at 9.9 percent in 2010 from the 12-percent decline expected this year.
Despite this, the agency is expecting non-tax revenues to drop by 17 percent next year to P129.9 billion from the projected P156.5 billion this year due to lower proceeds from the sale of big-ticket assets. Earnings from privatization projects are also seen to drop to P2.5 billion next year from P30 billion expected this year.
Expenditures, meanwhile, are seen to rise by 3 percent to P1.543 trillion next year from P1.489 trillion projected this year as the government hikes spending to overcome the slowdown in the economy.
As a result of the improved tax take, the Finance Department is expecting the budget deficit to decline to P208.4 billion or 2.5 percent of GDP in 2010 from P250 billion or 3.2 percent of GDP expected this year.
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