BIR lowers 2014 collection target
The Bureau of Internal Revenue (BIR) lowered its collection target this year by 2.1 percent to P1.425-trillion from the original P1.456 trillion after the main tax agency cut its revenue goal on income taxes.
Data from the BIR showed that the bureau is now looking at P829.75 billion in revenues from income taxes, lower by 3 percent compared with P855.77 billion previous target set by President Aquino’s economic managers.
The reduction in income taxes target for the year was due to the exclusion of withholding tax on government securities collected by the BIR from the Bureau of Treasury.
The revised 2014 collection target, however, is higher by 14 percent year-on-year from P1.253-trillion goal in 2013.
BIR, meanwhile, kept its revenue targets on value-added tax (VAT) at P325.74 billion, excise taxes at P124.17 billion as well as the P72.06 billion for percentage taxes and P78.24 billion in other taxes.
BIR Commissioner Kim S. Jacinto-Henares, meanwhile, explained that the P1.456 trillion remains as the agency’s main target for the year and the P1.456 trillion is the government’s collection goal allocation for implementing offices.
In January to March this year, the BIR is targeting P299.35 billion in revenues, equivalent to 20.5 percent of the agency’s full-year target, while the in second quarter, it expects collection to reach P417 billion, or about 28.3 percent of its 2014 goal.
In April, which is traditionally the BIR’s strongest month because of the yearly deadline for filing income tax returns, revenues are expected to amount to P176.14 billion.
By the end of June, the BIR is projecting that revenues would reach P716.35 billion, equivalent to about to 49.2 percent for the year’s collection target.
In the third-quarter, the government’s tax agency is aiming to generate P365.37 billion, or 25.1 percent of its 2014 target, while in the final three-months of the year, the BIR is looking at P380.26 in revenues, equivalent to 26.1 percent of the target.
In 2013, Jacinto-Henares earlier said that the agency had worked hard to attain its full year collection target, but she declined to disclose if they likely met the P1.253-trillion goal.
In January to November last year, BIR collections reached P1.12 trillion, already surpassing the total actual collection for the whole year of 2012, which amounted to P1.058 trillion.
For the month of December, the BIR needed to raise P133 billion to meet its 2013 collection target of P1.253 trillion. However, the government set only P90.79-billion revenue goal for last month.
Jacinto-Henares had already projected that the agency’s shortfall will be substantially reduced in the fourth-quarter of the year to below P10 billion or even meet its full-year collection goal.
The BIR official also said that the agency has no plan to ask for a reduction in collection target of P1.456 trillion for this year, set by the interagency Development Budget Coordinating Committee (DBCC).
“Whatever goal they want to set, we don’t now question target. We will just work hard to attain our goal,” Jacinto-Henares said.