MANILA, Philippines – The Bureau of Internal Revenue (BIR) did not meet its collection target for April as large taxpayers and big businesses in Makati City declared higher tax shield.
The BIR collected P156.1 billion in April, 11 percent lower than its target of P176.5 billion.
“The shortfall was more from large taxpayers and big companies in Makati City that have fiscal incentive. We also noted an increase in tax deductible such as donation to charitable institution because of the string of natural disasters that hit the country,” BIR Commissioner Kim Henares said.
The collection is higher by 4.8 percent year-on-year from P149 billion on the back of higher revenues.
The BIR raised P420.81 billion in revenues in April, a 7 percent jump from the P393.06 billion in the same period last year.
The BIR’s end-April collections, however, did not meet the P469.86 billion target by 10 percent for the period.
Henares said the tax agency still believes that it will be able to recover in the remaining 8 months of the year.
“Among others, the BIR is embarking on an intensified audit of the books of taxpayers that show a drop in their tax payments despite an increase in their revenues,” she said.
For 2014, the BIR has a target of P1.456 trillion in tax collections, higher by 19 percent compared with its actual revenue take last year.
“Collections by the BIR were affected by the low growth rate of taxes paid by taxpayers under the jurisdiction of the Large Taxpayers Service and corporate taxpayers in the National Capital Region,” Henares said.
“Although, the gross revenues of these taxpayers, these did not translate to tax revenues as they enjoy some forms of tax incentives. In order to address this, it is imperative that the proposed administrative legislative measure, the Fiscal Incentive Rationalization Bill be passed soonest,” she added.