BIR aims to collect more VAT this year

MANILA, Philippines - The Bureau of Internal Revenue (BIR) expects to collect more from consumption taxes this year, Commissioner Sixto Esquivias IV said. The agency plans to hike value-added tax collections by 39.66 percent to P195.98 billion from P140.32 billion in 2008, the BIR said in Revenue Memorandum Order 7–2009. Besides providing directives or instructions, RMOs also prescribe allocation of this year's BIR collection goal by the implementing office. The BIR has to generate P865.5 billion this year, higher than P778.6 billion collected in 2008. Last year’s actual VAT collection was P64.6 billion short of the P204.88-billion target. Republic Act 9337, otherwise known as the Expanded VAT Act of 2005, raised the rate to 12 percent from 10 percent. It forms part of the package of measures to help boost government’s fiscal position and reverse the credit rating downgrade since the Philippines incurred a chronic deficit. The amendatory law lifted the exemption of various sectors particularly oil and power from VAT payments. The BIR expects taxes on income and profit to reach P504.86 billion this year, excise taxes to hit P61 billion, and percentage taxes at P46.78 billion. - GMANews.TV