BIR misses June target despite higher collection

MANILA, Philippines – Tax collections in the Philippines rose to P109.55 billion ($2.4 billion) year-on-year in June, but fell short of its target.

The Bureau of Internal Revenue (BIR) said in a statement that it collected P109.55 billion ($2.40 billion) in tax revenues last month. This is 16.39% higher than collections made in June, but 7% lower than its June target of P117.81 billion ($2.58 billion).

The BIR did not explain why it missed its collection goal last month, as it focused on the double-digit growth from June last year.

Collections from BIR operations amounted to P107.09 billion ($2.35 billion), or 16.87% more than collections made last year, while those from non-BIR operations registered P2.46 billion ($53.99 million), or 1.14% lower.

The agency said collections by regional offices amounted to P39.05 billion ($857.11 million) last month, or 17% above year ago levels. Those from large taxpayers also climbed 17% to P68.04 billion ($1.49 billion).

For the first half of the year, the agency collected P705.87 billion ($15.49 billion), accounting for only 42% of its full-year target of P1.67 trillion ($36.65 billion).

Should the agency fail to hit its collection target for the year again, it will contribute to budget deficits and force the government to borrow funds to make up for the shortfall. 

Last year, BIR missed its P1.46 trillion ($32.04 billion) tax collection goal. It collected only P1.33 trillion ($29.19 billion) in revenues. — Rappler.com

$1 = P45.56