BIR overshoots tax collection amidst pandemic

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BAGUIO CITY– The Cordillera office of the Bureau of Internal Revenue (BIR-CAR) was able to overshoot its 2020 tax collection goal by over 11 percent amidst the heavy impact inflicted by the Coronavirus Disease (COVID-19) pandemic to the overall state of the economy not only in the region but also in the whole country.

BIR-CAR regional director Douglas Rufino stated that the bureau’s tax collection goal for 2020 was pegged at P4.6 billion but it was able to collect some P5.19 billion in taxes from individual and corporate taxpayers in the region which reflects more than 11 percent more than the imposed tax collection goal.

He added that while there were businesses that were heavily impacted by the pandemic such as the tourism-related establishments, English tutorial schools, boarding houses, dormitories, transportation among others, there were also businesses that were able to sustain their operations like the food establishments, hardware stores, construction companies, markets among others that allowed the agency to be able to sustain its collection from the said business activities.

Based on the data from the BIR-CAR, the Baguio revenue district office accounted for the bulk of the taxes that were collected with over P2.8billion which was slightly short of its projected tax collection goal of P2.724 billion or a negative 1.72 percent short from the goal.

The Abra venue district office was able to collect some P449.6 million in taxes within its area of jurisdiction from January to December last year which is P143.6 million or 46.92 percent more than the tax collection goal of P306 million.

The Benguet revenue district office was able to exceed its tax collection goal of 745.8 million by around 9.98 percent or P74.4 million after it was able to collect some P820.3 million during the 2020 taxable year.

Further, the Mountain Province revenue district was also able to collect some P281.9 million taxes last year which is 68.6 million or 31.9 percent more than its goal of P213.3 million while the Kalinga-Apayao revenue district office collected some P657.4 million in taxes which is P173.1 million or 35.74 percent more than its tax collection goal of P484.3 million.

Moreover, the Ifugao revenue district office was able to collect some P313.1 million in taxes within its area of jurisdiction which was P106.3 million or 51 percent more than its P208.7 million tax collection goal last year.

For the first quarter of 2021, the BIR-CAR was able to collect some P1.348 billion in taxes which is P215.9 million or 19.06 percent more than the P1.132.8 billion tax collection goal for the year.

Abra had an actual collection of P120.9 million which is 26 percent more than its target of P101.9 million while Baguio City was able to collect some P607.9 million in taxes which is P29.1 million or 5 percent more than its tax collection goal.

Benguet collected some P252.6 million which is P74.7 million or 41.99 percent more than its P177.9 million tax collection goal while Mountain Province was able to collect some P84.8 million which was P23.4 million or 38.18 percent more than its P61.3 million tax collection goal.

Subsequently, the Kalinga-Apayao revenue district was able to collect P169.2 million which was P24.8 million or 17 percent more than its P144.3 million tax collection goal while Ifugao was able to collect some P105 million in taxes which was P36.6 million or 53 percent more than its P68.3 million tax collection goal.

Rufino attributed the impressive tax collection of the region to the cooperation of the individual and corporate taxpayers in the timely payment of their right taxes even with the heavy impact inflicted by the pandemic to numerous economic activities in the different parts of the Cordillera.

The BIR-CAR official claimed that the agency will closely monitor the online selling activities to ensure that the said businesses will be registered with the agency for them to be able to pay their taxes due to the government to help in achieving its tax collection goal for this year.

Rufino admitted that it will be very difficult for the agency to achieve its projected tax collection goal for this year because of the continuing negative effects of the pandemic to the economy but the agency will do its best to try to meet its tax collection goal pursuant to t6he lowered estimates provided by the budget coordinating committee. By HENT

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