The Bureau of Internal Revenue (BIR) said its tax collection in February increased by more than 5 percent to P78.4 billion compared to its tax collections in February 2013.
In a statement, the bureau said that the P78.4 billion tax collection in February was “up by P3.9 billion or 5.2 percent” compared to the year-ago levels but was P22.8 billion lower than the P101.2 billion collected in January.
“It has been observed that the sectors of the economy that are registering high growth are sectors that enjoy incentives like income tax holidays and preferential rates, and/or are also exempted from value-added tax because of these incentives,” the BIR said in a statement.
“As a result, the growth in these sectors does not translate to an increase in tax collection.
This also points to the need to rationalize fiscal incentives, and to review laws that grant fiscal incentives. In addition, the Bureau will intensify its audit of large taxpayers,” it added.
Collections from BIR operations totaled P76.1 billion, an increase of 5.1 percent or P3.7 billion from the February 2013 figures. Meanwhile, collections from non-BIR operations also increased, up 7.8 percent year-on-year or by P164.4 million to P2.3 billion.
The BIR said its regional offices also raised their collections by P2.7 billion or 10.1 percent to P29.9 billion compared to the year-earlier level.
Collections by the Large Taxpayer Service—the unit that collects taxes from large-scale businesses, corporations and establishments— totaled P46.3 billion, up by 2.1 percent or P967.9 million compared to the amount collected in the previous year.
Earlier, BIR Commissioner Kim Henares expressed confidence that the agency will meet its tax targets for this year, which is pegged at P1.456 trillion, despite not meeting the P1.253 trillion target for 2013. The BIR collected a total of P1.217 trillion for full-year 2013, which was 2.95 percent or P37.04 billion below the 2013 target.