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By Chino S. Leyco, Reporter
THE Bureau of Internal Revenue (BIR) failed to
attain its promised collection goal for last month after the
government refused to borrow short-term through its regular auctions
of debt papers.
Sources said the bureau’s preliminary revenue
collection in May reached P77.5 billion, lower than the P78-billion
goal. Last month’s collection however was higher than the P66.7
billion in the same period last year.
Higher year-on-year collection in May was due to
improved corporate income taxes in the first three months of the
year.
From January to May, BIR collections reached
P335.5 billion. For the second quarter alone, the agency is tasked
to collect P219 billion in line with its full year target of P1.1
trillion.
A bureau source said the P500-million shortfall
was due to the government’s refusal to accept bids made by banks
for short-term Treasury bills. The Bureau of Treasury had rejected
the offers as banks were demanding higher yields amid rising
inflation. Purchases of T-bills and other government securities are
taxed.
“The BIR was expecting a P10-billion shortfall
after the P91.3-billion collection in April,” the source said.
The bureau is under pressure to surpass its
promised goal this year as the government plans to raise spending
and cushion the impact of skyrocketing prices through more
subsidies, especially for the poor.
The Arroyo administration announced earlier that
it is abandoning a plan to balance its budget this year. Finance
Secretary Margarito B. Teves said the government expects to end the
year with a budget deficit of P40 billion to P75 billion. At
end-April, the government incurred a P28.5-billion revenue
shortfall.
Apart from taxes, the government expects to
raise P30 billion this year from the sale of state assets.
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