REVENUE COLLECTION is on track to exceed this year’s revised goal, with revenue effort expected to be the highest since 1997, the Department of Finance (DoF) said.
“Total revenue collection for 2024 is expected to increase to P4.42 trillion by the end of the year, surpassing the full-year target,” the DoF said in a statement on Monday.
The Development Budget Coordination Committee (DBCC) on Dec. 2 raised this year’s revenue collection goal to P4.38 trillion from P4.27 trillion previously.
“As a percentage of GDP (gross domestic product) the emerging revenues will climb to 16.7%, the highest in the last 27 years or since 1997,” the DoF said.
The DoF said it was able to generate more revenues to fund the national budget without imposing new taxes.
Instead, the DoF said it privatized public assets, raised the dividend contributions of government-owned and -controlled corporations (GOCCs) and did a “sweep” of unused funds of GOCCs.
In April, the DoF raised the mandatory dividend remittances of GOCCs to the National Government to 75% of their annual net earnings in 2023 from 50% previously.
“The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) likewise improved their revenue administration efficiency by ensuring ease of paying taxes and accelerating their respective digitalization programs,” it said.
Latest data from the Bureau of the Treasury showed revenue collections jumped by 16.83% to P3.77 trillion in the January-to-October period.
Taxes, which made up 86% of the total revenues, increased by 11.4% to P3.23 trillion as of end-October. BIR collections rose by 13.49% to P2.42 trillion as of end-October, while Customs collections went up by 5.32% to P777.6 billion.
“The rest of the DoF’s revenue reforms are in the advanced stages in Congress, namely the Rationalization of the Fiscal Mining Regime, the Excise Tax on Single-Use Plastic Bags, Package 4 of the Comprehensive Tax Reform Program, and the Motor Vehicle Road User’s Tax,” DoF said.
The House version of the rationalization of the fiscal mining regime was approved last year, while its Senate counterpart is still pending at plenary.
The excise tax on single-use plastic bags, comprehensive tax reform program, and the motor vehicle road user’s tax have also been approved by the House of Representatives.
“2024 is a year of triumph for the Filipino people. In the face of unprecedented challenges, we have emerged stronger. I assure you that from here on, things will get better — because you have a government that works very hard to ensure that all Filipinos reap the rewards of strong economic growth through more comfortable lives and more high-quality jobs,” Finance Secretary Ralph G. Recto said in a statement.
The DBCC trimmed the GDP growth target for this year to a range of 6-6.5% but widened the target band to 6-8% for 2025 until 2028, due to “evolving domestic and global uncertainties.”
Despite the revised target, the DBCC “remains optimistic” about achieving the 6-6.5% growth target this year. — A.R.A.Inosante