Cheaper oil price drags down Customs collection

In September

The Bureau of Customs (BOC), government’s second largest tax agency, said that revenues in September this year contracted due to cheaper crude oil prices.

In a statement, Customs Commissioner Alberto D. Lina, said the agency collected 32.65 billion in September, lower by 0.8 percent compared with the same month last year.

Customs’ collection in September is also 20.6 percent below the 41.1-billion target for the month.

“The decline in collection is due to the decrease in total value by 5.4 percent despite the increase in total volume of importation by 20.5 percent,” Lina said.

During the month, non-oil revenue is up by 11.3 percent, while collection from oil decreased by 33 percent to 6 billion from 9 billion the same month last year.

In January to September 2015, Customs collected 268.229 billion, up 0.9 percent compared with the same period last year.

At end-September, Customs collection is 14.6 percent lower than the 314.171-billion target for the period.

While the agency fell short by 18 percent of target, Customs posted an increase in non-oil collections by 13.2 percent year-on-year. Both volume and imports grew by 16 percent and 5.5 percemt percent, respectively.

For oil products, the volume of imports increased by 20.6 percent, but value dropped by 32.4 percent.

Collections from oil decreased by 32 percent year-on-year, but higher than target by 11.7 percent or 5 billion. The average oil price from January to September is lower by 48 percent compared with last year.

“Overall, the decline in collection was driven by the drop in the total value of imports by 1.8 percent despite increase in volume by 17 percent,” Lina said.

However, the bureau remains optimistic that it can reach target collections for the year.

“Preliminary figures for October is looking up so we will strengthen efforts to meet targets by the end of the year,” Lina added.

For 2015, Customs is tasked to collect 436.7 billion and the goal is programmed to increase to 498.7 billion next year.