BIR misses 2018 revenue target on lower excise tax, VAT collections

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Metro Manila (CNN Philippines, January 30) — The country's tax agency has failed to reach its target collection for 2018 despite the effectivity of the tax reform law.

In a report to the House Ways and Means Committee Tuesday, the Bureau of Internal Revenue (BIR) said it has raised ₱1.961 trillion last year, missing its ₱2.044-trillion full-year target by 4.01 percent.

However, this is 10.15 percent higher than the bureau's 2017 collection which stood at ₱1.780 trillion.

 

The BIR also fell short of its ₱1.024 trillion target income tax collection by 4.14 percent .

Value added tax (VAT) collection was also behind the agency's ₱435-trillion goal at ₱358.27 trillion.

The BIR raised ₱290.64 trillion from excise tax, 12.67 percent lower than the ₱332.80 target.

Percentage tax and other tax collections were also below target.

The agency attributed the shortfall to lower collections from excise tax and VAT, which are both included in the Tax Reform for Acceleration and Inclusion law.

The BIR said there was low fuel tax collection due to lower sales from two refineries, higher diesel and liquefied petroleum gas imports, and non-implementation of the fuel marking project to prevent smuggling.

Manufacturers, meanwhile, shifted from high fructose corn syrup to ordinary sugar, causing low tax collection from sweetened beverages.

Tax collections from automobiles also dropped due to higher excise tax on brand new cars, while the tax exemption appeal of Semirara Mining and Power Corp. as well as the suspension of some mining firms resulted in lower tax collection on minerals.