Natural consequence of strict lockdown - a significant dip in government revenues
Collections drop due to COVID-19
MANILA – The revenue generating agencies reported a significant drop in their collections from January to mid-April this year due to the COVID-19 pandemic.
In a statement released today by the Department of Finance, the Bureau of Internal Revenue (BIR) collected P480.64 billion, lower by P226.15 billion or 32 percent below the collections for the same period last year. This was due to the community quarantine measures or lockdown in Luzon and other parts of the country which resulted in regular business transactions. It will be recalled the BIR extended the deadlines for the filing and payment of income and other taxes to the month of May.
Based on initial data submitted by the BIR to the Department of Finance (DOF) show that actual collections from January 1 to April 17 is short of P398.54 billion or 45.3 percent of the target of P879.18 billion for the period ending April 15.
Over at th Bureau of Customs (BOC), preliminary data show actual collections dropped further to P160.98 billion from January 1 to mid-April, said to be P3.42 billion or 2.08 percent lower than the amount of P164.4 billion collected in the same period last year.
The BOC collections from January 1 to April 15 is P32.91 billion or 17 percent short of the target P193.89 billion for the said period.
The combined collections of the BIR and BOC reached P641.62 billion which is P431.45 billion or 40 percent short of the target P1.073 trillion.
The BIR accounts for 78 percent of the state’s tax collection capacity, reported more discouraging numbers for the April 1-17 period with collections reaching P25.01 billion or just 8.66 percent of the target P288.75 billion for the entire month. (Melo M. Acuña)
With stringent measures in place, very limited persons can go marketing as malls have remained closed. (Melo M. Acuna)