BIR sets ‘realistic’ tax goals this year

CEBU, Philippines - The Bureau of Internal Revenue in Cebu (BIR-13) is tasked to collect P29.6 billion this year, which is deemed a more "realistic" goal after the regional agency failed to hit its P36-billion "aspirational" target last year.

"This time the policy of the commissioner is to have a realistic goal," BIR-13 Director Alfredo Misajon said in an interview at the sidelines of agency's tax campaign kick-off in Cebu City late Friday afternoon.

In the Visayas, BIR-13 has the highest goal and among the top 10 revenue regions nationwide with the highest tax targets this year.

The revenue official said they have a "good fighting chance" in hitting the goal this year, considering the good past collection performance of the agency.

"And also, if the current trends of our economy will continue," Misajon said.

"The economy of Cebu is vibrant. I think a lot of businessmen are confident on the Cebu economy. Our demographics are good. We have a good workforce. We have a consumer-driven economy, which means more taxes," the BIR official said.

He also said the agency would further broaden its tax base by establishing new taxpayers.

"We will engage the taxpayers more," he added.

Misajon said the Cebu-Cordova bridge, which will start construction this year, is also being eyed as a potential big revenue source.

"We're looking at it. We consulted people in-charge in determining the value of real property," he said.

He's also confident the bridge, targeted for operation by 2020, will further boost the mobility of people and, goods and services, which in turn will eventually propel economic growth and give additional revenue to government.

Last year, BIR-13 collected P26.6 billion, falling short of its P36-billion target or posting a P9.7-billion revenue shortfall versus the target.

However, the 2016 collection is up 2.7 percent or P700 million from the P25.9 billion it collected in 2015 when it had a P25.4-billion goal.

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

The 2016 target was 43 percent higher than the 2015 target of P25.4 billion. (FREEMAN)