Govt lowers BIR revenue goal in line with global outlook

The interagency Development Budget Coordinating Committee (DBCC) reduced the Bureau of Internal Revenue’s collection goal for the year after reviewing the global economic outlook, the bureau said Friday. BIR Commissioner Kim Henares noted that the DBCC dropped P4.5 billion from the bureau’s original target of P940 billion for 2011, with the new collection goal now at P935.5 billion. Despite this development, the BIR chief said her agency will still go for its original target. “We’re not thinking of that. We’re working to meet the target," she said. According to the BIR, the approach is to continue filing cases against tax evaders while improving the bureau’s tax administration and plugging “tax loopholes" like the recent imposition of the 12-percent value-added tax on highway toll. Because of the sputtering US economy and the euro debt crisis, the DBCC earlier announced it has lowered Philippine growth and trade forecasts this year and next. It also narrowed its deficit ceiling for the year. Philippine output in gross domestic product terms will likely grow between 4.5 percent and 5.5 percent, the committee said. The latest growth expectations compare with the 5-percent to 6-percent assumption under the 2011 budget. From the previous estimates of 9 percent to 10 percent in export growth and 17 percent to 18 percent for imports, the DBCC lowered the targets to 9 percent and 13 percent, respectively. With the expected slowdown this year, the committee said budget deficit will still narrow down to P260.6 billion or 2.6 percent of GDP. The original deficit assumption was P300 billion or 3 percent of GDP. The new budget gap takes into account lower revenues of P1.357 trillion and expenditures of P1.617 trillion, from previous estimates of P1.411 trillion and P1.711 trillion, respectively. — VS, GMA News