BIR likely missed Nov. goal; full-year target beyond reach?

Business World

THE BUREAU of Internal Revenue (BIR) has all but abandoned this year’s collection goal as it likely missed its target last month.

"I don’t know if [we were] able to reach it (the November target) because the goal is too high," BIR Commissioner Kim S. Jacinto-Henares said in a telephone interview yesterday.

She did not provide estimates but noted that last month’s P86.03-billion goal was nearly 23% more than the actual take of around P70 billion a year earlier.

November data will be released by Dec. 15, Ms. Jacinto-Henares said.

The BIR -- which accounts for about two-thirds of the state’s tax revenues -- remains behind target with collections at P670.8 billion as of October, below the P700-billion goal for the period.

Blame has been laid on the government’s adoption of a higher 2010 economic growth target -- 5.0-6.0% from 2.6-3.6% previously -- which meant that the BIR’s collection goal had to be raised to P860.4 billion from P830.4 billion.

"The P860.4-billion [2010 goal] is no longer possible ... [but] P830 billion is doable," Ms. Jacinto-Henares said.

She explained that to meet the full-year target, the BIR needed to collect an extra P30 billion on top of its P73.78-billion goal for December.

"That would be very hard [to meet], that’s why I say the P860-billion target, to be able to be met, really needs a stretch [by the BIR]," she said.

Missing the November goal would add pressure to the budget deficit as the Customs bureau, the country’s second main revenue agency, has already said it may have missed its P26.93-billion target last month. -- P. P. Magtulis