Customs hikes 2019 collection target to P670 billion

MANILA, Philippines — The Bureau of Customs (BOC) raised its target collection for 2019 to P670 billion to help the government raise more funds for its massive infrastructure program, a top official said yesterday.

Customs deputy commissioner for the Assessment and Operations Coordinating Group Edward James dy Buco said the BOC’s revenue program for next year has been increased by 12 percent to P670 billion from the current year’s target of P598 billion.

 “The targets presently (are) high targets because of the Build Build Build program of the President,” Dy Buco said during a panel discussion at the Tax Management Association of the Philippines’ General Membership Meeting.

“So from 2017, our target was P481 billion, by 2018 it became P598 billion. By next year, it will become P670 billion. Every time, (there is) by hunders of billion of increase in collection,” he said.

For this year, customs duties and taxes collected by the BOC already reached P434.6 billion as of end-September.

This was 34 percent higher than the P323.8 billion generated by the agency in the same period last year. It was likewise four percent above the bureau’s P417.5 billion target for the nine-month period.

For September alone, the BOC‘s collections rose by 27 percent to P51.1 billion compared to the P40.3 billion collected in the same month last year.

The BOC attributed the continuous improvement in its revenue performance to the increased volume and value of traded goods, as well as higher exchange rate.

Improved enforcement and correct valuation and tariff classification in all ports also contributed to better collection.

Dy Buco expressed confidence the BOC would be able to hit its P598 billion target for 2018 amid efforts to address corruption and increase revenue collection.

Among these measures is the one-strike policy against erring employees and district collectors who fail to meet their respective target collections.

Upon his assumption in office, Customs commissioner Isidro Lapena laid out his plans to introduce reforms within the BOC.

The five-point reform plan includes an intensified anti-corruption drive, improvement of trade facilitation, increase in revenue collections, strengthening of anti-smuggling efforts, and enhancement of personnel incentives and compensation program.