JANUARY-FEBRUARY EVAT REVENUE SHORT OF TARGET
MANILA, APRIL 20, 2006 (STAR) By Donnabelle L. Gatdula - The Department of Finance (DOF) reported yesterday that revenue from the expanded value-added-tax (EVAT) fell short of the government’s estimate by P100 million during the first two months of the year.
Moody’s Investors Service earlier said it may upgrade the country’s debt ratings outlook to stable from negative if the government meets its value-added-tax target and narrows the budget shortfall within the P125 billion estimate.
The government collected P7.6 billion from EVAT, less than the P7.7 billion estimate for January and February, Finance Undersecretary Gil Beltran said yesterday.
"It is expected that the Bureau of Internal Revenue’s shortfall will be minimized in the next few months as it undertakes a tax audit on returns filed by taxpayers this month,’’ Beltran said.
President Arroyo in February raised the expanded value-added- tax to 12 percent from 10 percent, after lifting the exemptions on oil, power and other products and services in November.
The government expects to collect an extra P75 billion from the tax changes, helping her administration narrow the budget deficit.
Moody’s has a negative outlook on the country’s P3.96 trillion debt, which means it is more likely to cut than raise its B1 ratings, four steps below investment grade.
The DOF also reported that since the implementation of the EVAT in November last year, total collections amounted to P12.1 billion.
Beltran said the four-month EVAT collection was on track with the P75 billion target for the whole of 2006.
Beltran said the Bureau of Customs (BOC) accounted for the bulk of EVAT collections amounting to P10.8 billion while the Bureau of Internal Revenue (BIR) contributed P1.3 billion.
Gross EVAT collections amounted to the P15.5 billion during the period. Of which P12.8 billion were collected from the lifting of exemptions on petroleum products (P11.9 billion); electric power (P600 million); transportation (P145.8 million); medical services (P41.2 million); legal services (P14.9 million); non-food agricultural products (P5.6 million); passenger vessels (P1.2 million); and professionals (P80 million).
Chief News Editor: Sol Jose Vanzi
© Copyright, 2006
by PHILIPPINE HEADLINE NEWS ONLINE
All rights reserved
PHILIPPINE HEADLINE NEWS ONLINE [PHNO] WEBSITE