Xmas spending to help BIR meet Dec. revenue goal

The Bureau of Internal Revenue (BIR), government’s main revenue agency, will likely meet its collection target this month as Christmas spending is inducing more economic activities. BIR Commissioner Kim Henares said her agency is on the right track when it comes to reaching its December goal of P73.78 billion. The seasonal holiday spending which stimulates business activity translates to more tax collections, according to the commissioner. “The holiday season and all the business activity that it brings may just be what the BIR needs to reach its target for December," Henares said. As for BIR’s original full-year goal of P830 billion, the BIR chief said she expects to meet it. The agency needs less than P100 billion, or P76.675 billion, to achieve its 2010 collection goal. “It’s still possible to meet the P830 billion," she said. But Henares earlier conceded that attaining the revised P860-billion goal is farfetched, saying the amount is too high. The bureau collected P82.43 billion in November, P3.6-billion below its P86.032 billion target. Still, the agency said the collections in November reflect the BIR’s second highest monthly performance after April’s P91.16 billion. The collections in January-November totaled P753.32 billion. The Aquino administration is relying on collections of the BIR and the Bureau of Customs (BOC) to cover the P325-billion budget deficit this year equivalent to 3.9 percent of GDP (gross domestic product). As of end-November, the deficit stood at P269.8 billion. — VS, GMANews.TV