The government is still on track in meeting its target for tax and revenue effort this year, the Department of Finance (DOF) said on Wednesday.
“We are still on track to meet our goals for the tax effort and revenue effort, especially given our high first-quarter growth. We note that in the past, tax effort has gotten a significant boost from the first quarter of the year to the second, and we anticipate the same given our very successful tax collections in April this year,” Finance Secretary Cesar Purisima said.
The country’s first-quarter 2013 gross domestic product (GDP) expanded to 7.8 percent. Revenue effort for 2013 is targeted by the government at 14.7 percent of GDP, while tax effort is targeted at 13.5 percent of GDP.
The finance department reported that for the first quarter of the year, the Philippines recorded a revenue effort of 13.7 percent of GDP and a tax effort of 11.9 percent of GDP.
Revenue effort is calculated as total national government revenues as a percentage of GDP, while tax effort reflects total national government tax revenues as a percentage of GDP.
It noted that the Bureau of Internal Revenue (BIR) posted collections amounting to 9.2 percent of GDP, while the Bureau of Customs’ collections were marked at 2.6 percent of GDP.
The Bureau of the Treasury recorded collections of 0.9 percent of GDP, while other offices collected 0.1 percent of GDP, it added.
In 2012, tax effort increased by 1.6 percent between the first quarter and second quarter. In April 2013, the BIR collected P149 billion, a 28-percent growth year-on-year.