Value added tax take up on higher goods prices

MANILA, Philippines - Thanks to soaring commodity prices, the Philippine government was able to collect higher value added taxes (VAT) for the first six months compared to the same period last year, the Department of Finance (DOF) said. Preliminary finance department data indicated that collections from the expanded VAT reached P53.3 billion in the first half, 22 percent more than the P43.7 billion collected in the same period last year. The Bureau of Customs—the Philippines’ second-largest revenue source—collected P28.71 billion from VAT from January to June, 20.6 percent higher than the P23.8 billion collected in the same six-month period last year. Finance officials said customs collection in the first semester climbed due to higher amounts booked on raw materials for petroleum products, which reached P9.4 billion, and finished petroleum products, which stood at P12.08 billion. For its part, the Bureau of Internal Revenue—the Philippine government’s largest source of revenue—posted a 23.6 percent increase in collection to P24.6 billion in the first six months of 2008 from P19.9 billion last year. The government expects additional value-added tax collections to reach P119.59 billion this year, 34.5 percent higher than 2007's P88.93 billion collection. Customs’ total value-added tax collection this year is seen to rise 46.8 percent to P83.98 billion from P57.19 billion last year, while the BIR’s collection is seen to hit P35.6 billion, 49 percent higher than last year's P23.89 billion. The government exceeded its programmed collection in of P88.88 billion by P51 million in 2007. The BIR collected P31.7 billion or P4.2 billion above the goal while Customs booked P57.2 billion or P4.1 billion below its target. In her recent State of the Nation Address, President Gloria Macapagal-Arroyo stood firm on keeping the 12 percent value-added tax in place. The administration said it is using windfalls from value-added tax collection to finance government programs aimed at helping the poor cope with the impact of rising food and oil prices. - GMANews.TV