Philippines: Tax effort improves in 2017

• Jan 26, 2018

The Philippines’ tax effort improved in 2017 from a year earlier on the back of double-digit collection growth at the Bureau of Internal Revenue (BIR), the agency’s chief claimed on Thursday.

Tax collection as a percentage of gross domestic product (GDP) rose to 11.26 percent from 10.8 percent in 2016, BIR Commissioner Cesar Dulay said during a Tax Management Association of the Philippines meeting.

“For the past five years, the [tax effort]average was 10.5 percent to 10.9 percent but for 2017 we hit [a]tax effort of 11.26 percent, thanks to the cooperation of taxpayers,” Dulay said.

He particularly noted growth in BIR collections, which hit P1.76 trillion last year — up 12.8 percent from the previous year’s P1.56 trillion.

The tax agency, however, missed its P1.78-trillion collection goal.

“[F]or the past five years the average growth rate was anywhere from 9.31 percent to 9.71 percent. They say it (2017) was a pretty good collection year,” Dulay said.

He expressed optimism of hitting this year’s P2.039-billion collection target given the implementation of Tax Reform for Acceleration and Inclusion law.

Finance Secretary Carlos Dominguez 3rd has directed the BIR to work closely with the Bureau of Customs — the government’s second-biggest source of revenues — under a intensified drive against smuggling and tax fraud.

Last year’s tax haul was significantly boosted by a record P30-billion settlement by cigarette manufacturer Mighty Corp., which the government accused of evading nearly P40 billion in taxes. |

The BIR has also encouraged the electronic filing of tax returns and bared plans to expand tax payment channels to include more private banks, mobile payment options and neighborhood Bayad Centers.

Source: http://www.manilatimes.net/tax-effort-improves-2017/376514/