MANILA - Income tax revenues are expected to post double-digit growth next year, buoyed by a global economic recovery marked by stronger business activity, Finance department data showed.

Taxes on net income and profits, the largest source of tax revenues, are projected to reach P519.37 billion in 2010, 10% more than this year’s program of P470.34 billion.

"The higher GDP [gross domestic product] growth justifies the increase in the target," Bureau of Internal Revenue (BIR) Senior Deputy Commissioner Joel L. Tan-Torres said in a phone interview yesterday. "We will do our best to meet our targets. The Oplan Kandado will be pursued. We will also monitor big-ticket items as well as inter-related companies’ transactions."

Taxes from companies’ net income and profits comprise the bulk of income tax collections and are expected to hit P309.64 billion next year, 13.5% more than this year’s P272.74 billion goal.

Income tax from individuals, on the other hand, are projected to reach P156.96 billion next year, up by almost 13% from this year’s P139.08-billion program.

Income tax from other sources such as estates and trusts engaged in business, are expected to hit P52.77 billion from P58.53 billion this year.

Income tax revenues will constitute 59% of BIR’s P875.08 billion collection target next year.

Last year, income tax collections totaled P477.55 billion, P4.7-billion short of a P482.25-billion target. The said revenue source accounted for almost 62% of the tax bureau’s P778.58-billion collection in 2008.

For this year, income tax revenues make up almost 59% of BIR’s P798.5 billion collection target and 43% of the P1.08-trillion programmed tax revenues

The government expects the economy to grow 2.6%-3.6% next year, higher than this year’s 0.8%-1.8% outlook, amid recovering domestic and global demand.

"The increase in tax revenues hinges on a more buoyant outlook for economic growth, combined with higher imports, as different sectors start to recover," Finance Undersecretary Gil S. Beltran said in a budget hearing last week.

The government also expects excise tax revenues to rise to P60.16 billion next year, from this year’s P58.04-billion goal.

Taxes from alcohol projects are seen to hit P21.29 billion next year, while taxes from tobacco are expected to reach P26.51 billion.

Excise tax collections from fuel are projected to reach P10.16 billion, while those from other sources are seen to reach P2.2 billion.

Excise tax collections will comprise close to 7% of the BIR collections in 2010.