EVAT NETS P18.7 BILLION IN QUARTER 1
MANILA, JUNE 21, 2007 (STAR) By Des Ferriols - The Department of Finance (DOF) announced yesterday that the expanded value-added tax (EVAT) program generated P18.7 billion in net revenues in the first quarter of this year.
The VAT is considered as a self-collecting tax since it is automatically added into all products and services produced by the economy.
The DOF said the first quarter collection exceeded by P86 million the P18.6 billion target and was P1.5 billion higher than last yearís actual revenue.
According to the DOF, the Bureau of Internal Revenue (BIR) collected P8.7 billion during the review period, putting the bureau ahead of its EVAT collection target by P2.7 billion.
On the other hand, the DOF said the Bureau of Customs (BOC) collected P9.9 billion, falling short of its target by P2.66 billion due to the decline in the importation of oil and petroleum products.
The DOF said the BIRís collection was boosted by higher collection from the electric power industry (P3.9 billion) as well as higher yields from input VAT on capital equipment which generated P1.9 billion.
The DOF said there was also a one-month impact of the cap on input VAT crediting which added P700 million.
According to the DOF, the impact of mitigating measures intended to soften the effects of the VAT rate increase was also lower during the period, costing the government only P2.7 billion.
On the other hand, the DOF said collections were negatively affected by lower volume of domestic oil production which generated VAT amounting to P100 million against the P1.2-billion target.
Input VAT claims are also higher at P2.7 billion against the projected claims of only P1.9 billion.
On the other hand, the DOF said collections are likewise affected by slightly lower collections from non-VAT reforms (P0.83 billion actual vs. P0.79 billion program).
The DOF said the RVAT rose by 8.9 percent relative to last yearís first quarter collection.
BIR collections rose from P6.2 billion to P8.7 billion, a 41.1 percent growth while BOC collections declined from P11 billion to P9.9 billion, a 9.2 percent decrease.
Chief News Editor: Sol Jose Vanzi
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