BIR EXCEEDS 6-MONTH EVAT TARGET
MANILA, AUGUST 7, 2006 (STAR) By Donnabelle L. Gatdula - Revenue collections from the expanded value-added tax (EVAT) continue to improve in the first six months of the year, official documents showed.
For the six-month period, the National Government said it raised some P38.22 billion from VAT collections, higher than the P31.03 billion target for the period.
Collections of the Bureau of Internal Revenue (BIR) for the period doubled to P12.4 billion as against the P6.03 billion target while the Bureau of Customs barely surpassed its P25-billion target when it registered collections of P25.7 billion for the period under review.
Republic Act 9337 or the Reformed VAT law took effect in Nov. 2005. Iwth this, it is estimated that government will raise some P81.4 billion in additional revenues from VAT collections this year.
Of the P38.2 billion VAT revenues, the bulk was accounted for by collections from the lifting of exemptions at P31.5 billion. Out of the previous VAT-exempt sectors, the biggest contribution came from raw materials for petroleum products at P14.3 billion; petroleum industry, P9.57 billion; electric power industry, P6.3 billion; domestic transport of passengers by air and sea, P387.6 million; coal, P384.6 million; electric cooperatives, P258.5 million; medical services, P91.5 million; legal services, P66.6 million; passenger vessels, P25.7 million; non-food agricultural products, P19.5 million; natural gas P16.5 million; and professionals, P6 million.
For the first six months, input VAT spreading and caps generated P3.2 billion while VAT withholding on government purchases raised P763 million.
Non-VAT reforms, on the other hand, generated P4.16 billion with the increases in the rate for corporate income tax yielding PP3.95 million; gross receipts tax, P161.4 million; and Philippine Amusement ang Gaming Corp. (Pagcor) tax payments, P49.9 million.
The mitigating measures implemented by the government, meanwhile, resulted in foregone revenues of P7.9 billion.
The bulk was accounted for by the reduction in excise taxes on petroleum products, which amounted to P5.7 billion. The repeal of the franchise tax on power distribution and the common carrier’s tax on domestic transport resulted in P1.7 billion and P44.4 million foregone revenues, respectively.
Thus far, the VAT is a major revenue earner for the country’s main collection agencies, the BIR and Customs. The implementation of EVAT supports the government’s goal to improve its tax effort by 17 percent, which it last registered in the late 1990s.
Chief News Editor: Sol Jose Vanzi
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