Customs may miss October target, blames strong peso

Reuters

Posted at Oct 28 2010 03:40 PM | Updated as of Oct 31 2010 03:57 AM

MANILA, Philippines (UPDATE) - The Bureau of Customs, the government's second largest revenue agency, will likely miss its October collection target of P23.8 billion ($551 million), partly due to a strong peso, the head of the agency said on Thursday.

Customs commissioner Joselito Alvarez said that despite rising import volumes, the peso's steady appreciation to the dollar and the scrapping of tariffs on oil, wheat, steel, and motor vehicles from Japan in June have eroded revenue collection.

So far, the peso has gained almost 7% to the dollar as global investors flock to Asian assets as the US economic recovery has been sluggish.