Record oil prices help govt exceed EVAT targets

MANILA, Philippines - The Philippine government exceeded its value added tax targets from January to August this year, earning higher revenues as oil costs continued to hit record-highs during the period. Although the Department of Finance (DOF) only intended to collect P72.124 for the eight-month period, it ended up incurring an excess P8.705 billion, bringing the total to P80.829 billion, Finance Secretary Margartio Teves said on Sunday. The P8-billion excess revenues were “helped by rising oil prices then," Finance Undersecretary Gil Beltran told reporters. EVAT collections for the whole year may likely reach P119.588 billion at least, Beltran added. The Expanded Value Added Tax law—also known as Republic Act 9337—empowered the Bureau of Internal Revenue to collect a 12 percent tax on oil. In turn, record high oil costs, enabled the government to earn more from the consumption tax. Bulk of excess revenues were used to subsidize electricity costs of poor families, who were reeling from the multiple effects of soaring crude prices. Besides being forced to pay higher passenger fares, consumers also had to pay more for food since producers had to pass on increasing transport and production costs—also brought about by the oil hike—to their customers. The Philippines imports approximately 90 percent of its oil needs. Imported crude is currently at $41.94 a barrel, down from its historic high of $145. - GMANews.TV