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Kulang! BIR to miss P2.32T target revenue for 2019, says Salceda

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By JOHN CARLO M. CAHINHINAN

House Committee on Ways and Means chair Joey Salceda has expressed concern over the reported P104-billion shortfall in tax collections despite the full scale implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law

Salceda said BIR would likely miss P104 billion of its revenue target this 2019.

According to Salceda, the projected target revenue for this year by the Development Budget Coordinating Committee (DBCC) is at P2.32 trillion but BIR has only collected P1.7 trillion as of October 2019.

“While this is 10 percent higher than the collection in the same period in 2019, this is falling short of the DBCC-set target by 4.71 percent,” said Salceda.

The Bureau of Internal Revenue has justified that the emerging shortfall, arguing that it is cause by the P55 Billion foregone revenue in fuel excise tax and the delay in the passage of the budget.

The BIR explained that almost 100% of the petroleum products are now imported upon the decision of Shell and Petron to import rather than refine fuel in the country—thus, it is now the Bureau of Customs (BOC) that collects the value added tax and excise taxes amounting to almost P55 billion.

Salceda wondered whether the same P55 bllion has been collected by the BOC “which is genetically prone” to smuggling—oil products perennially constituting the biggest smuggled good in the country.

Salceda’s panel requested the BIR to furnish the Committee a breakdown of revenue collection per tax type, as compared to the specific target set by the DBCC.

The BIR was asked to report on the impact of the TRAIN Law on the collection from individual income tax—given the P250,000 exemption provision under the law.

The Albay solon is also seeking the breakdown list of tthe collection on the excise tax of sweetened beverages.

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