The Bureau of Internal Revenue (BIR) exceeded its collection target for July as double-digit growths in regular tax, regional offices and Large Taxpayers’ Service revenues offset lower gains from non-BIR operations.
Data released by the BIR on Thursday showed the agency collected P119.94 billion in tax revenues in July, up P19.84 billion or 19.82 percent from the year-earlier level. The amount exceeded the month’s P119.88 billion collection target by P58.52 million or 0.05 percent.
A breakdown of the July tax revenue figure shows that collections from BIR operations, or regular tax revenues, reached P115.45 billion, higher by 21.61 percent or P20.51 billion from the amount collected in July 2013.
Non-BIR operations’ collections, such as taxes imposed on government securities sold by the Bureau of Treasury, stood at P4.49 billion, down by 12.97 percent or P668.87 million from the comparative year-earlier period.
Collections by the BIR’s regional offices surged 15.12 percent to P37.92 billion, or P4.98 billion more than the collections made in July 2013.
Meanwhile, collections by the Large Taxpayers Service amounted to P77.54 billion, P15.53 billion or 25.05 percent more than the collections made a year earlier.
For full-year 2014, the bureau is aiming to collect P1.456 trillion, raising the target amount from the 2013 target of P1.253 trillion by 16.2 percent or P203 billion.
Nicholas Antonio Mapa, associate economist at the Bank of the Philippine Islands, believes the bureau’s increased collection improves the country’s fiscal position and is always positive in terms of attaining higher credit ratings.
However, on the other hand, the economist said the government needs to spend this money for projects and improvement of services in order to put the funds to good use.
“We’ve seen the government increase collections and at the same time government spending remains very flat. We need this trend to change,” he said.