PH targets 16% tax collection ratio by 2016
MANILA, Philippines - The Aquino government added another target for 2016, when the term of the current administration ends.
Finance Secretary Cesar Purisima said that the government is hoping to improve the ratio of tax collections-to-GDP -- a measure of efficiency -- to 16%.
In 2011, the ratio of tax collection stood at 12.3%, while the government targeted 13.4% and 13.8% in 2012 and 2013, respectively. As of January to July 2012, tax collection to GDP stood at 15.4%.
"It's very ambitious target, but we're focused on specific items to hit this target," he said.
Purisima said they are looking at updating the average tax collection for self-employed and individuals and professionals. The government could generate at least P300 billion, which would make approximately 3% of GDP.
"Our goal is to increase the current average collection of about P7,000 per individual in this category to P200,000."
They also hope to increase real estate tax collection to to P50 billion, a far cry from the current P850 million. This would contribute another 0.5% to the ratio.
"If you analyze estate taxes collected by the government, it's always around P850 million to P1 billion. Over the past many years, asset prices have increased. Just from that you would expect estate taxes should increase," he said.
For customs collections, Purisima noted administrative efforts, including imposing similar value to similar goods in different ports.
He added that they will also work on different commodities also like construction materials based on the increase in construction activity
in the country. "We expect increases in collection of taxes and duties from steel, fixture, tiles, furnitures, and from all these items that are imported. So we will start looking at all of this and we will work closely with the BOC (Bureau of Customs)," he added. - Rappler.com