BIR collection target revised to P2.26 T

The Development Budget Coordination Committee (DBCC) has reduced the Bureau of Internal Revenue (BIR)’s collection target for 2020 to P2.26 trillion from the original target of P2.576 trillion due to the impact of the coronavirus disease 2019 or COVID-19 pandemic on the economy.

Internal Revenue Deputy Commissioner Arnel Guballa said the revision was made in consideration of the impact of the COVID-19 pandemic to businesses.

“The target was revised due to the effect of COVID-19. Most businesses closed down – airlines, tourism and other non-essentials. The enhanced community quarantine slowed down business,” Guballa said.

Of the revised goal, P2.205 trillion is expected to come from BIR operations, while the remaining P54.58 billion is set to be generated through non-BIR operations.

“The revised BIR operations target of P2.205 trillion is lower by P289.296 billion or 11.59 percent compared to the initial goal of P2.495 trillion,” according to the BIR.

“The decrease in BIR operations collection target of 11.59 percent was uniformly applied to all implementing offices,” it said.

Earlier, the Department of Finance (DOF) said the BIR recorded a decline in its collections from January to mid-April due to quarantine measures, as well as the extension of the filing of income taxes.

Preliminary data from the DOF showed that the BIR generated P480.64 billion in revenues from Jan. 1 to April 17, 32 percent lower than the P706.79 billion recorded in the same period last year.

The figure was also 45.3 percent below the BIR’s target of P879.18 billion for the period.

From April 1 to April 17, the BIR was able to raise only P25.01 billion, which is equivalent to 8.66 percent of its P288.75 billion target for the entire month.

This was also 89.5 percent down from the BIR’s April 2019 collection of P237.93 billion.