Tax collection on 7 sectors lag

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The Bureau of Internal Revenue (BIR) has identified seven sectors where tax collections are lagging in the first five months of the year.

The BIR, in its presentation with the Senate ways and means committee yesterday, said these large taxpayers service industries are automobile, cement, construction, non-essential, petroleum, power and real estate.

The BIR’s collection stood at P1.14 trillion in the first half of 2022, 6.33 percent short of the revenue goal of P1.21 trillion for January to June.

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“One strategy we will focus on (to improve collections) is to analyze the negative performances of the various industries,” said BIR commissioner Lilia Catris Guillermo.

“(We will) formulate creative ways of addressing the slow performance of these sectors,” Guillermo added. Guillermo’s presentation showed tax collections from the automobile industry fell 3.07 percent in January to May 2022 versus the year ago level.

For cement, it is down 15.76 percent, while construction posted a 13.72 percent decline.

Tax collections from the non-essential industry was lower by 9.78 percent year-on-year.

For petroleum, power and real estate, tax revenues were lower by 23.03 percent, 12.13 percent and 16.92 percent respectively.

“In the first semester of 2022, we (were) below target by 6.33 percent, but in the next semester, we commit to surpass this goal by at least 20 percent,” Guillermo said.

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