House asks BOC to explain tax shortfalls

MANILA, Philippines — The House of Representatives committee on ways and means is requiring the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) to explain their collection shortfalls this year.

The committee, chaired by Albay Rep. Joey Salceda, learned of the revenue deficits in two hearings this week.

Salceda said the BIR “is likely to miss P104 billion of its 2019 revenue target of P2.32 trillion.”

“As of October, it has collected P1.7 trillion. While this is 10 percent higher than the collection during the same period in 2018, this is falling short by 4.71 percent of the goal set by the Development Budget Coordination Committee (DBCC),” he said.

He said the BIR tried to justify its shortfall by citing P55 billion in forgone revenues because oil companies are now importing oil products instead of refining crude oil in the country.

Salceda pointed out that in BOC’s case, the bureau is 6.3 percent in deficit, collecting P535 billion of its P571-billion target.

He added that his committee is asking Customs officials “to exercise greater surveillance at the Port of Manila, with most dismal deficit at P21 billion or 25 percent below target, and at the Manila International Container Port, which has a shortfall of P20 billion, or 13.1 percent below target.”

He said BOC officials at the Limay, Bataan port reported higher importation of crude oil, instead of finished products.

“This belies the alibi of the BIR that oil companies have shifted to importing their requirements of processed petroleum products,” he said.