The Department of Finance (DOF) said the government’s tax collections from cellular phone shipments increased by more than quarter in the first four-months of the year despite lower volumes.
Preliminary data submitted by the Bureau of Customs to Finance Secretary Carlos G. Dominguez III revealed that tax revenues from imported cellphones reached P2 billion in January to April 2021, up by 27 percent year-on-year from P1.57 billion.
The higher tax haul was realized despite the 30 percent decline in volume of cellphone imports during the period, which totaled 660,000 kilograms from 950,000 kilograms a year earlier.
According the Customs bureau, improved valuation method implemented by agency on taxing mobile phone resulted in higher collections.
Customs Commissioner Rey Leonardo Guerrero said that valuation of cellphone imports has shifted from taxation based on volume to taxation per piece and by brand.
“It was mainly because of the entry of high-end cellphones and telecommunications equipment, and also because of better valuation,” Guerrero said of the improved revenue collection during a recent meeting.
The Customs also collected P24.79 million from mobile phone parts in January to April, which was 78 percent more than last year’s P13.94 million despite almost the same volume of these goods entering the country in both periods.
Imports of other types of telecommunications equipment and devices hauled in P3.46 billion in revenues this year as of April 30, which was 28 percent more than the P2.7 billion collected during the same period in 2020.
In total, the Customs was able to collect P5.49 billion from imports by the telecommunications sector at end-April, representing a 28-percent improvement from the P4.3 billion collection during the same period last year.