Home News BIR Aims For Higher Collection Target In 2016

BIR Aims For Higher Collection Target In 2016

-

The Bureau of Internal Revenue, the government’s largest revenue collection agency is under pressure for its collection target for 2016 is a whopping P2 trillion, which is 21 percent higher compared to last year’s goal of P1.674 trillion.

Based on BIR’s memorandum order, a P2.025 trillion collection target was set this year. “This is higher than the P1.674 trillion CY (calendar year) 2015 goal by P0.351 trillion or 21.01 percent,” the memo stated.

BIR data showed that income taxes is expected to be the highest contributor of the total target collection with P1.243 trillion followed by value added taxes with P405.11 billion. Third, would come from excise taxes with P170.72 billion; and P82.90 billion is expected to come from percentage taxes. The remaining amount of P123.54 should come from other taxes. This revenue target for 2016 according to BIR Commissioner Kim Jacinto-Henares is “very ambitious”.

Data also showed that 67 percent of the P3.002 trillion national budget would come from BIR’s collection goal for 2016. The Bureau of Customs and Bureau of Treasury are also budget contributors. P415.75 billion would be the collection target for January to March this year and P552.79 billion is the expected collection for April to June or second quarter. P513.06 billion for July to September or third quarter.

The BIR was not able to meet its collection goal last year. For the first 11 months of 2015, revenues increased by 9 percent or P1.33 trillion compared to P1.22 trillion in the same period of the previous year but still 14 percent short of the total collection goal of P1.674 trillion.

“Historically, revenue collections have fallen short of target,” Justino Calaycay Jr., an analyst at Accord Capital Equities Corp said. However, Calaycay also pointed out that efficiency should make the target attainable. “I believe there has been marked improvement under President Benigno Aquino 3rd’s term,” he added.

Sources: Manila Bulletin, The Standard Manila Times

Featured Product

Latest News

YOU MUST READ THIS