BIR Cebu sets P31.3B collection goal this year

CEBU, Philippines — The Bureau of Internal Revenue-13 in Cebu targets to collect P31.3 billion this year.

In a phone interview yesterday, BIR-13 regional director Aynie Dizon said the goal for 2018 is deemed "reasonable and achievable."

The 2018 target is up 6.8 percent from last year's goal.

BIR-13's initial goal for 2018 was set at P33.8 billion but was lowered down P31.3 billion due to the foreseen impact of the newly implemented Tax Reform for Acceleration and Inclusion (TRAIN) Act on its collection, which is pegged at P2.5 billion in foregone revenues.

Based on official data, BIR-13 is set to collect this year P18.3 billion in personal income taxes; P9.4 billion in value-added tax (VAT); P11.6 million in excise taxes; P1.2 billion in percentage taxes; P2.5 billion in other taxes.

While she was confident the target was achievable, Dizon said the agency has "to put a lot of efforts to achieve our target."

In 2017, BIR-13 collected P27.59 billion, 6.11 percent short of its P29.38 billion.

Dizon had said the growing economy of Cebu is a significant factor in the agency's revenue generation growth this year.

She noted BIR-13 is expecting more collection from the real estate industry through revenues come from the sale of condominium units, house and lots and townhouses in the form of capital gains and documentary stamp taxes.

Cebu's construction boom, including building and road constructions, is also another revenue opportunity for the agency.

She said that another promising sector that's seen to help boost tax collection this year is manufacturing.

Likewise, the tax agency is also setting its sights on the hotel and restaurant businesses which are booming in Cebu.

Hotel and restaurant businesses are VAT (value-added tax) taxpayers.

Furthermore, the retail sector is also seen as a promising revenue source.

BIR-13 collects taxes in Cebu and Bohol through five revenue district offices.

In December, BIR-13 launched its segmentation of medium taxpayers which is seen to help its collection efficiency improve.

Dizon had said the expected growth in medium taxpayers' contribution to revenue collection could be attributed to the increase in business sales and transactions, and improved monitoring of their compliance.

The said top 500 taxpayers comprise the Medium Taxpayers Segment (MTS) of the region.

They are technically large taxpayers without the requisite notification from the revenue commissioner to be enlisted and classified as such large taxpayer.

The creation of the MTS in the region is largely intended to strengthen and expand the coverage of the Large Taxpayers Service (LTS) of the BIR.

During its initial implementation, the project will cover the top 500 non-individual taxpayers. In the next five years, BIR-13 is looking to increase the number to 1,500 to eventually increase the tax contribution of the group to more than 50 percent. (FREEMAN)