DOF vows intensified tax admin measures in Q4
The Department of Finance (DOF) has announced that the Bureau of Internal Revenue (BIR) and the Bureau of Customs will further intensify their administrative measures to collect more taxes and duties in the fourth quarter of 2023.
In a statement, Finance Secretary Benjamin E. Diokno said the government’s two main tax agencies will implement intensified administrative measures for the remaining months of the year.
These measures include a tax compliance verification drive, the Run After Tax Evaders (RATE) program, “Oplan: Kandado,” the Philippine Offshore Gaming Operator (POGO) task force, the strike team, and the digital transformation programs of the BIR.
In addition, Diokno stated that the BIR has increased its efforts to detect and penalize individuals such as buyers, sellers, and Certified Public Accountants (CPAS) who use fraudulent invoices and receipts through the Run After Fake Transactions (RAFT) campaign.
Regarding the Customs bureau, the Finance chief said the agency will continue the full implementation of the fuel marking program, intensify postaudit clearance of importers, enhance trade facilitation, and strengthen border control.
Total government revenues for the first nine months reached P2.84 trillion, a 6.8 percent increase compared to ₱2.66 trillion in the same period last year.
Revenues collected in the first three quarters accounted for 76.1 percent of the Development Budget Coordination Committee’s (DBCC) full-year program of P3.73 trillion.
Taxes constituted the majority of revenues from January to September, amounting to ₱2.54 trillion, showing a 6.4 percent year-on-year improvement.
Specifically, the BIR increased its collections to ₱1.86 trillion, surpassing its collection for the same period last year by 7.3 percent.
However, the BIR’S collection for the first three quarters was slightly below the target by 3.9 percent.
Diokno attributed the below-target BIR collection to the reduction of personal income tax in the second tranche, immediate expensing of input Valueadded Tax (VAT) on capital goods, and the shift in VAT filing from monthly to quarterly basis starting this year.
On the other hand, Customs recorded a 3.4 percent growth in collection for the nine-month period, amounting to ₱660.4 billion. This amount exceeded the programmed target by 2.5 percent.
Similarly, tax collections from other offices experienced a year-on-year increase of 27.1 percent, amounting to ₱22.9 billion.
Non-tax revenues also saw significant improvement, reaching ₱296.5 billion from January to September. This represents a 10.5 percent increase compared to the same period last year.