Source: www.mb.com.ph
MANILA, Philippines – Two of the government's main tax agencies are optimistic that they will meet their combined collection target of P1.26 trillion next year after conceding that the P1.141 trillion goal for 2010 is not attainable.
Internal Revenue Commissioner Kim S. Jacinto-Henares, who is responsible for more than 60 percent of the government’s annual income, said she is confident that her agency will meet its P940 billion target next year.
The 2011 revenue goal of the Bureau of Internal Revenue (BIR) is 9.3 percent higher compared with P860 billion revised tax goal for this year.
Jacinto-Henares has already conceded that this year's goal will not be met, adding the BIR can only raise P830 billion.
Meanwhile, Customs Commissioner Angelito A. Alvarez said that his agency is “hopeful” that it will attain the 2011 target of P320 billion on the back of higher imports of infrastructure materials.
The Bureau of Customs, responsible for about a fifth of annual government profit, is expected to increase its tax take by 14 percent next year from P280.7 billion this year.
Alvarez said the 2010 revenue take of government's second biggest revenue agency will be likely below the target by 5 percent.
The inter-agency Development Budget Coordination Committee already set a budget deficit ceiling of P290 billion for 2011 or about 3.2 percent of gross domestic product (GDP).
Finance Secretary Cesar V. Purisima earlier said the government could trim its budget deficit in 2011 to P226 billion.
Purisima explained the narrower deficit is achievable if the country's economy will grow by 7 percent in 2011.
The P226-billion deficit is equivalent to 2.5 percent of GDP.
“Assuming we attain the 7 percent target... the deficit will be much lower than what was expected,” Purisima said.
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