TRAIN income exceeds target
This is due to better compliance, increase in registered taxpayers, and lower unemployment and underemployment rates
Revenues from the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) proved higher than its target by 6.8 percent, latest data from the Department of Finance (DoF) show.
“Preliminary data show that TRAIN revenues reached P55.6 billion in the first half of 2019, compared to the target for the same period of P52.1 billion,” the DoF said.
“Actual TRAIN revenues were P3.5 billion or 6.8 percent above target,” it added.
The DoF traced this development to gains in the personal income tax, petroleum excise tax, sweetened beverage excise tax, tobacco excise tax and the documentary
stamp tax which brought a combined P21.8 billion.
“Petroleum excise tax is above target by P3.4 billion, due to higher than programmed volume of imports, and better compliance in anticipation of fuel marking program roll out. (Also,) tobacco excise tax is above target by P2.1 billion, due to better compliance as the government continued to crack down illicit tobacco trade,” the agency said. “Sweetened beverage (SB) excise tax is above target by P1.5 billion due to improved compliance as result of the issuance of a revenue regulation that provided clear guidelines on the coverage of the SB excise tax,” it added.
Likewise, documentary tax stamps were up P2.8 billion against its target owing to “higher transaction value and better collection efficiency.”
The DoF also reported lower than projected losses from reduced personal income tax as the actual figure stood P52.5 billion versus initial assumption of P64.5 billion. This translates to government savings of P11.9 billion.
“This is due to better compliance, increase in registered taxpayers, and lower unemployment and underemployment rates,” the DoF explained.
Earlier, Finance Secretary Carlos Dominguez III expressed optimism the revenue trend would continue and that lawmakers would allow the passage of the Comprehensive Tax Reform Program’s (CTRP) remaining reform package.
“We are confident this growth will be sustained in the coming period through continuing administrative reforms and the completion of the (CTRP) that will make our tax system simpler, fairer and more efficient,” he said. TRAIN revenue now stands 49.2 percent higher or almost half of the P113.1 billion target
for 2019.
We are confident this growth will be sustained in the coming period through continuing administrative reforms and the completion of the (CTRP) that will make our tax system simpler, fairer and more efficient.