COVID-19 results in lower revenue collections
As expected, Q1 revenues fall P156-b short of collection target
MANILA – COVID-19 has shown its impact in the government revenue target as the Department of Finance reported its collections for the first quarter of the year fell short by P156 billion.
In a statement, the DOF said with most economic activities on a standstill from the second half of March due to the Enhanced Community Quarantine (ECQ), actual collections by the Bureaus of Internal Revenue and of Customs reached P600,86 billion for the first three months or P10.17 billion less of the revenues collected in the same period last year.
According to the preliminary data submitted to the Department of Finance, the amount is P156.26 billion short of the P757.12 billion revenue target for the first quarter.
Revenue collections last March resulted in the combined collections of P163.16 billion which was P34.5 billion lower than the P197.64 billion collections for the same month last year and P85.36 billion short of the target of P248.5 billion for the same period.
Malacañang’s enforcement of the Enhanced Community Quarantine or lockdown began last March 16 and has been extended to April 30. There is a possibility for another extension.
Containment measures have been implemented by local government units in other parts of the country.
Finance Secretary Carlos G. Dominguez III said estimates by the Development Budget Coordinating Committee (DBCC) show that if the economy posts zero growth this year as a result of health, social and economic impacts of the COVID-19 pandemic, the decrease in revenues will reach P286.4 billion.
Should the growth be at negative one percent, the revenue decline is estimated at P318 billion. The DBCC set the revenue collection goal of P3.307 trillion for this year. The Bureau of Internal Revenue was mandated to collect P2.576 trillion while the Bureau of Customs was expected to produce P731 billion. (Melo M. Acuña)
Finance Secretary Carlos G. Dominguez III. (DoF File Photo)