BIR, BOC collections exceed target in August

MANILA, Philippines — The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) managed to exceed their respective collection targets in August, the Department of Finance (DOF) reported yesterday.

According to data presented by Finance Secretary Carlos Dominguez during the Sulong Pilipinas forum, the BIR generated P172.06 billion in total revenues in August, 45.6 percent higher than the revised target of P118.2 billion.

The BOC, for its part, raised P44.65 billion during the same month, 32.6 percent higher than the revised target of P33.68 billion.

“Both the Bureau of Customs and the Bureau of Internal Revenue registered hefty tax collections in August,” Dominguez said.

However, data from the Bureau of the Treasury (BTr) showed that both collections of the BIR and BOC were lower year-on-year.

The BIR’s August collection was down by 16.3 percent from the P205.58 billion revenue in the same month last year, while the BOC’s revenue was lower by 16.68 percent than last year’s P53.59 billion.

For 2020, the BIR is targeting to collect P1.74 trillion, while the BOC’s goal is to raise P541.7 billion in revenues.

Dominguez said the above-target collection of both agencies in August is a sign that the Philippine economy is already on its path toward recovery.

He said the improvement in the country’s labor numbers after the easing of quarantine restrictions “is very encouraging.”

“As we gradually reopened our economy, our unemployment rate in July significantly dropped to 10 percent from a high of 17.7 percent in April,” Dominguez said.

The DOF chief said the continued slowdown in the contraction in manufacturing production also signals rising economic activities.

He said the value of the production index in July showed a slower decline of 14.8 percent from a high of 41.2 percent in April. The volume of production likewise dropped at a slower rate of 11.9 percent compared to 38.8 percent in April.

“Improvements in our employment numbers and other economic indicators will depend on how we will continue to ease mobility restrictions by opening up traditional modes of transportation that are safe and adhere strictly to health standards,” Dominguez said.

The Philippine economy contracted by 16.5 percent in the second quarter of the year, the lowest recorded quarterly decline since 1981.

For 2020, the Development Budget Coordination Committee sees the economy contracting by 5.5 percent, worse than the previous estimate of two to 3.4 percent.

Nevertheless, it projects an economic rebound in 2021, with the GDP seen growing by 6.5 percent to 7.5 percent.