Customs sees revenue rising to P921 billion in 2023

MANILA, Philippines — The Bureau of Customs (BOC) is targeting another record revenue collection of P921 billion next year even amid expectations of an economic slowdown due to a looming global recession.

During the Kapihan sa Manila Bay forum, Customs Commissioner Yogi Filemon Ruiz said the revenue target of the agency for 2023 has been set at P921 billion.

This is two percent higher than the P901.34 billion set by the Cabinet-level Development Budget Coordination Committee.

Next year’s revenue target is a 28 percent jump from the 2022 goal of P721.52 billion.

“Based on economic indicators in 2023, the DOF (Department of Finance) is seeing that the economy will continue to recover, that there will be more consumption and economic activities,” Ruiz said.
“There will be more imports next year. Companies have already scheduled their imports ahead of time as they expect economic recovery.”

Global and local banks and institutions are predicting a global recession next year.

Even the economic team has reduced its gross domestic product growth expectation at six to seven percent in 2023.

Even with the slowdown, the Philippines is still seen posting one of the highest growth among the ASEAN+6 economies.

Still, Ruiz said there is a need to be realistic given regional geopolitical tensions that could affect revenues of the BOC.

“But it is not a reason to stop from our duties and mandate of the BOC. We will not renege on our promise to collect record revenues for 2023,” Ruiz said.

The BOC has already raked in a record P851 billion in revenues as of Dec. 27, effectively overshooting its own target and that of the goal set by the government for the whole year.

For the entire year, Customs has been exceeding its monthly collection targets on the back of higher imports in line with economic reopening.

All 17 collection districts of the BOC have exceeded their respective collection targets.

The Manila International Container Port contributed the highest revenue for the year, followed by the Port of Batangas and the Port of Limay.

Apart from economic reopening, Ruiz attributed the record-high revenue to better Customs processes, more consistent and transparent operations, as well as the stringent implementation of priority programs to curb smuggling and corruption.

“We are ending the year with so much surplus,” Ruiz said.

“This will redound to more projects, services, and infrastructure that the government can deliver,” he said.

As the second largest revenue agency, the BOC is mandated to deliver financial resources to fund the government’s programs and projects.