BoC district collector Atty. Tomas L. Alcid admitted that these twin setbacks crippled the attempt of the bureau to match its previous revenue goal.

Other observers here said that the imposition of the expanded value added tax (EVAT) on oil and electric companies was a double whammy that forced the canneries to close shop and lay off thousands of people working directly for the five companies.

Increases in the cost of tinplates also contributed to the decision to close shop since the canning firms had been severely affected by the deluge of cheap foreign products subsidized by their governments.

As a result of the EVAT, local produccrs had to pay more taxes while the imported goods that enter illegally do not pay any tax at all.

Those that do enter the country are slapped low tariffs, thus posing unfair competition to Philippine products and causing the layoffs of thousands of workers.

Alcid said the five canning factories operating in the  city and the international airlines flights are major contributors of revenues.

They have been a steady source of revenues for the BoC and have contributed their share in supporting the operations of government.

He said their revenue collection slid after the closure of the canning factories and the cancellation of international flights from this city to Sandakan, Malaysia.

"Another factor that affected our revenue collection was the shutdown of the airline serving the Zamboanga City- Sandakan, Malaysia route," the BoC district collector said.

Airline companies serving the Sandakan, Malaysia routes and vice versa cancelled their flights after complaining that the Zamboanga International Airport has poor facilities and a defective runway.

This pockmarked runway has caused delays even for domestic flights.

The BoC here relies on the collections of revenues from foreign vessels also calling on the Zamboanga City International Port.

Alcid did not state how much the shortfall in revenue collection for this year would be.