The Bureau of Internal Revenue (BIR) is setting its sights on seven major business sectors that registered negative growth in collections following the government’s main tax agency’s weak performance in the first semester.
During a Senate hearing on Tuesday, Aug. 16, BIR Commissioner Lilia C. Guillermo expressed concern over the recorded declines in tax payments made by seven large taxpayer industries in the first five-months of the year.
Based on the BIR data, total tax collections from automobile, cement, constructions, non-essential, petroleum, power and real estate industries reached P90.64 billion from January to May, down 13 percent from P104.58 billion in the same period last year.
“We will focus and analyze negative performances of the various industries like automobile, cement, construction, non-essential, petroleum, power, and real estate, and formulate creative ways of addressing the slow performance,” Guillermo said.
Among seven industries, petroleum saw the biggest decline in tax payments, dropping 23 percent from P10.31 billion to P7.93 billion at end-May. It was followed by real-estate with taxes amounting to P13.16 billion from P15.84 billion.
Cement also reported lower tax dues at P4.08 billion, down 16 percent from P4.85 billion, while constructions fell 14 percent to P19.8 billion from P22.97 billion. Taxes paid by the power sector also went down to P31.08 billion from P35.37 billion.
Meanwhile, BIR revenues from non-essentials decreased 10 percent from P3.16 billion to P2.85 billion, and automobile with P11.7 billion tax payments, down three percent from P12.08 billion a year earlier.
Guillermo admitted that the BIR, which contributes about two-thirds to government coffers, missed its collection target in the first six-months of the year by 6.3 percent or P76.75 billion.
From January to June, the BIR was tasked to collect P1.212 trillion, but the agency raised only P1.135 trillion.
“In the first semester of 2022, we were still below target by 6.33 percent, but in the next semester, we commit to surpass this goal by at least 20 percent,” Guillermo said.
To meet the P2.438 trillion full-year target, the BIR needs to raise at least P1.226 trillion in the second-half of 2022.
Earlier, Finance Secretary Benjamin E. Diokno said the Marcos administration expects the BIR to attain its collection target this year despite weaker than expected performance in the six-semester.
Diokno also said that Guillermo committed to improve the agency’s collection performance in the second-half of the year.