BIR confident it will hit downgraded P2.85-T target
THE Bureau of Internal Revenue (BIR) said it is on track to meet its downgraded P2.85 trillion collection target this year.
“As of November, the BIR is on track to meet its 2024 Emerging Goal (set by) the Development Budget Coordination Committee (DBCC) in March,” BIR Commissioner Romeo D. Lumagui, Jr. told BusinessWorld on the sidelines of a briefing at the House of Representatives. He noted that the target had been adjusted then to account for unpassed legislation and weaker-than-expected gross domestic product (GDP) growth.
In the first 11 months, the BIR collected P2.67 trillion, exceeding the P2.66 trillion goal for the period, it said in a Congressional hearing on Tuesday.
The total features a 36.67% increase in value-added tax collections to P622.24 billion.
The “other taxes” category posted 10.92% growth to P214.66 billion. Income tax grew 9.11% to P1.41 trillion.
Excise taxes totaled P284.53 billion, up 9.11%, with alcoholic beverages accounting for P103 billion and tobacco P130.83 billion.
Mr. Lumagui said excise performance reflects the shift in preference from cigarettes to vaping or electric cigarettes, and the impact of smuggling.
The P2.66 trillion collection for the 11 months would have failed to hit the earlier target of P2.84 trillion set in the Budget of Expenditures and Sources of Financing (BESF) issued in June 2023.
House Ways and Means Committee Chairman and Albay Rep. Jose Ma. Clemente S. Salceda said during the briefing: “If we did not (adjust) the BESF, then your performance would actually be negative.”
The economy expanded by a weaker-than-expected 5.2% in the third quarter, slowing from the revised 6.4% growth posted in the second quarter and 6% a year earlier.
This brought the nine-month growth average to 5.8%. Economic managers trimmed their GDP estimate for this year to 6-6.5% on Dec. 2.
“When the goal was set at P3 trillion, the forecast was that GDP would grow by 6-7%,” Mr. Lumagui said.
When the original target was set, it factored in revenue from unpassed legislation like the taxes on single-use plastics, pre-mixed alcoholic beverages, sweetened beverages and junk food, as well as the rationalization of the mining fiscal regime Mr. Lumagui said.
He called it “unfair” for the Bureau to be held to the original forecast when the new taxes did not happen.
“These are the laws that should have been passed for this year that could have or should have collected, that should have generated P107 billion. Shouldn’t that be removed from the goal because the law hasn’t been passed yet? You won’t be able to collect that for this year,” Mr. Lumagui said. — Aubrey Rose A. Inosante
