Philippines Misses 10th Tax Target

December 16, 2013 Taxation in Philippines

MANILA – The Philippines has missed its tax collections target for yet another month, and there is now a possibility that the country will not reach the tax revenue goal for the entire 2013 year.

In a statement issued late last week, the Bureau of Internal Revenue (BIR) announced that tax collections over the first 11 months of 2013, from January to November, reached a total of PHP 1.12 trillion, which is approximately 2 percent less than the government’s previously set target, despite the fact that it is still more than 15.54 percent above the cumulative tax revenues over the same time period in 2012.

The tax collections for the month of November alone were 3 percent, or 4.11 billion, below target, although it grew by approximately 14.17 percent, in comparison to the same month last year.

The month of November is the 10th monthly financial period this year when the BIR has failed to reach its own collections target, with the month of April being the only montlhy accounting period surpassing the collection goal.

In order to achieve fulfill the annual collection plan, the BIR will now need to bring in PHP 133 billion over the month of December, while the original estimate is set at PHP 90.79 billion.

The Revenue Commissioner Kim Henares has already commented on the feasibility of reaching the yearly collections goal, saying that it is still a viable possibility and that “…we just have to continue working hard.”

Photo by: Debbie Tingzon