DoF chief touts collection, spending rise
THE GOVERNMENT grew tax collections and disbursements at a double-digit pace last year, the Finance chief said yesterday, citing preliminary data.
“Indicative 2017 collection performance of BIR 12.5% growth BoC 17% growth,” said Finance Secretary Carlos G. Dominguez III in a Viber message to reporters on Thursday, referring to top revenue- generating agencies Bureau of Internal Revenue and Bureau of Customs.
“Disbursements 13.8% growth.”
Final data on the national government’s fiscal performance are scheduled to be released on March 2, according to the Bureau of the Treasury’s Web site.
The BIR raked in a total of P1.567 trillion in 2016, and a 12.5% increase would result in a P1.763-trillion collection for 2017.
The BoC on the other hand collected P396.37 billion in 2016, and a 17% growth would result in a P463.75-billion take last year.
Overall disbursements in 2016, meanwhile, totaled P2.549 trillion and a 13.8% increase would result in P2.901 trillion for 2017.
The preliminary figures would show the BIR falling short of its P1.783- trillion 2017 target by 1.12%.
The BoC on the other hand exceeded its P459.6-billion collection program by 0.85%.
For disbursements, the government is only short by 0.3% from its P2.909-trillion target.
Latest final data so far available show that the BIR raked in P1.621 trillion as of November last year, 12% more than the P1.45 trillion it collected in 2016’s comparable 11 months.
The BoC on the other hand collected 14% more in the same comparative periods at P413.1 billion from P361.5 billion.
End- November state spending totaled some P2.494 trillion, 10% more than the P2.266 trillion spent in 2016’s comparable 11 months.
BIR TARGET
The BIR is now looking at a P2.039-trillion collection target for this year, its Commissioner said separately yesterday.
BIR Commissioner Caesar R. Dulay, however, said that the target is still up for discussion with economic managers of the Development Budget Coordinating Committee (DBCC).
“P2.039 trillion — that’s a ballpark figure,” Mr. Dulay said during a press briefing when asked
for the bureau’s collection goal for this year.
“We have to validate with the DBCC because they set our goals together with the DoF (Department of Finance). But our initial feedback — it’s in that area.”
It is 15.66% more than the downward-revised P1.763 trillion target stated under the Budget of Expenditures and Sources of Financing (BESF) medium-term program, and 11.48% higher than the P1.829 trillion target it initially set early last year.
It is also higher than the P2.005-trillion 2018 target initially set by the DBCC under the 2018 BESF.
Mr. Dulay said with the enactment of Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Act, he is confident that the BIR can meet the target this year.
“Formulation of the bill was policy matter crafted out by the DoF and economic managers and I am confident when they run through the figures, we will be able to collect more taxes with the TRAIN bill in place,” he said.
“Our mandate is to go for gold, complemented by the new taxes that have to be posted. We are confident that we can collect at least more than what we have achieved last year.”
DBCC estimates that the TRAIN would generate a total of P82.3 billion in additional revenues this year.
However, Mr. Dulay said that there may be some initial difficulties in implementing the new tax law. “It will take some extra effort on our part because there are new taxes and rates being imposed. We have to craft out a good revenue regulation to address the mandate and the requirements,” he said.
Mr. Dulay said that the BIR aims to have the law’s implementing rules and regulations signed “within the month,” as it will hold public consultations on Jan. 11-12 on the draft.
The tax bureau had released initial guidelines on the revised withholding tax table for personal income tax, as well as the excise tax returns for sugar-sweetened beverages, which are available on its Web site.
Other revenue regulations will involve reduced exemptions for value added tax; higher excise tax rates on petroleum, automobiles, mineral products, tobacco and cosmetic procedures; simplified estate and donor’s tax systems; as well as higher percentage and documentary stamp tax rates.
He admitted that manpower remains one of the bureau’s constraints in enforcing tax laws effectively.
“I am even short. I am only operating at 50% of the plantilla,” he said.
“We will do it. It doesn’t mean that we will stop implementing it even if there’s a shortage of personnel. We have to do it, that’s our mandate.” —