Train revenues below target as of end-Sept – Dominguez

THE government is optimistic that revenues from tax reforms implemented last year will hit the 2018 target despite lower-than- expected results as of end-September.

“For the entire Train law, we collected P41.9 billion for the first three quarters,” Finance Secretary Carlos Dominguez 3rd said told reporters late on Friday.

Train, or the Tax Reform for Acceleration and Inclusion Act, provided income tax exemptions for those earning P250,000 and below and sought to make up for the revenue loss by imposing new taxes on fuel and sugarsweetened beverages, among others.

January-September Train revenues fell 5.4 percent short of the P44.3billion target but Dominguez insisted that the 94.7-percent collection rate was “not so bad”.

Department of Finance (DoF) data showed the biggest shortfalls involved the excise tax on sugar-sweetened beverages and value-added tax ( VAT). At P31.2 billion, the former was 27.9 percent below of the P43.3-billion target for the nine-month period.

“Sweetened beverage excise is short by P12.1 billion as the industry claims that no high fructose corn syrup (HFCS) has been used since January 1, 2018,” the DoF said.

Train imposed a P6 per liter tax on beverages using caloric and non- caloric sweeteners and P12 per liter on those using HFCS. Milk and three-inone coffee mixes were exempted.

Meanwhile, VAT collections of P3.6 billion missed the nine-month target of P24.8 billion by 85.4 percent.

“VAT is short by P12.2 billion. The

main reason by the revenue agencies is that there are only three industries (power transmission, jewelries, and the central bank) that reported importation, which is now VATable,” the DoF reported.

On a positive note, Dominguez said that losses from lower personal income taxes totaled P102.9 billion, lower than the projected