BIR fails to hit Q1 revenue target

The Bureau of Internal Revenue (BIR) failed to meet the revenue target in the first three months of the year, the Department of Finance announced over the weekend.

According to the DOF, collections of the BIR in the first quarter stood at P485.4 billion, P47.2 billion or 8.9% lower than the Development Budget Coordination Committee’s (DBCC) P532.6 billion.

First-quarter revenues, however, are still P32.4 billion or 7.2% higher than the P452.9 billion the agency collected in the comparable period of 2021.

BIR Deputy Commissioner Arnel Guballa attributed the shortfall on businesses utilizing their input VAT credits on purchases available to them under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

The agency reported a P17.4-billion shortfall in VAT collections, and another P9.4 billion in income tax collections for the first quarter of the year versus the targets set by the DBCC.

The bureau’s collections from its non-BIR operations for the quarter reached P18.1 billion, bringing its total collection for the quarter to P503.5 billion, up by P33 billion or 7.0% year on year.

The BIR is mandated to assess and collect all national internal revenue taxes, fees, and charges, and enforce all forfeitures, penalties, and fines connected. This includes cases decided in its favor by the Court of Tax Appeals and ordinary courts.

The agency collected P2.086 trillion in 2021, 0.25% higher than the collection target and 6.94% higher than the P1.951 trillion collected in 2020. —LBG, GMA News