BIR expects P37-B BTr income - FilAmNation | FilAmNation

Source: Manila Bulletin

MANILA, Philippines ? After the Bureau of Internal Revenue?s (BIR) lower than target collections from the open market operations of the Bureau of Treasury, the Department of Finance (DoF) expects income from trading of government securities would be almost unchanged next year.

Data from the finance department revealed that taxes that are expected to be remitted to the BIR from open market operations of the treasury bureau would reach P37.5 billion next year, higher by a little over 1 percent compared with P36.9 billion target for 2011.

The government had expected revenues from the trading Treasury bills and bonds would grow by a hefty 37 percent this year from P26.9 billion in the previous year, but the growth would be unlikely to attain after demand for additional borrowings become less.

The treasury bureau is selling less government securities to local investors this year due to government?s stable fiscal position as the country?s budget deficit remained way below the program for the year.

However, BIR Commissioner Kim S. Jacinto-Henares said they could have exceeded their target for the first seven months of the year if income from treasury bureau?s trading did not fall short of the target by P6.28 billion.

In the first seven months of the year, the government?s main tax agency?s collections reached P531.786 billion, short by only 0.58 percent or P3.13 billion compared to the target of P534.91 billion.

The surplus generated by the BIR from collecting taxes from income and sales taxes, which amounted to P2.3 billion during the period, was not enough to cover the shortfall from government securities taxes.

Meanwhile, Jacinto-Henares said that to reach its goal next year, the BIR would continue to ramp up its tax administration efforts, especially in regularly going after tax evaders and filing cases against them before the Department of Justice.

The finance department earlier floated the idea of stricter monitoring of taxes filed by self-employed individuals, citing the P340-billion revenue potential from the sector.

BIR collections account for 70 percent of total government revenues. (Chino S. Leyco)

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