DoF: Revenues likely breached goal at P4.42T

The Department of Finance (DoF) is optimistic that the government can exceed its full-year revenue target of P4.27 trillion toward P4.42 trillion, marking the highest revenue share in gross domestic product after 27 years.

In a statement on Monday, DoF reported the government already collected P3.77 trillion as of October, reflecting a 16.8 percent growth compared to the level posted in the first ten months of 2023.

Breaking it down, tax revenues reached P3.23 trillion or 11.4 percent higher than the year-ago level, while non-tax revenues hit P539.4 billion or 64.9 percent higher than last year.

“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 Recto said.

Tax base expands

DoF said the country’s lower jobless rate in the first ten months indicated more taxpayers as 48.6 million Filipinos have been earning an income.

The unemployment rate declined to 4 percent during the period, lower than the government’s full-year target range of 4.4 to 4.7 percent.

To ensure efficient tax collection, Recto said the Bureau of Internal Revenue (BIR) deployed digital tools, including the digital TIN ID.

BIR reported it already issued over 102,000 digital TIN IDs in March. “This is in line with the government’s thrust to promote ease of doing business,” BIR commissioner Romeo Lumagui Jr. said.

In June, BIR also started requiring local and foreign vape manufacturers to display revenue stamps as it was processing the digital tracking system for the consumer product. “It can check whether the items are illicit or not,” Lumagui said.

He shared last month that the BIR already collected about P1 billion in vape taxes and stressed that the bureau has been intensifying efforts against unregistered vapes to further boost the total tax collection. “I think P1 billion is still small. If you look around, there are no more shops solely selling traditional cigarettes,” Lumagui said.

With digitalized tax processes, DoF shared that the revenue effort as of September already improved to 17.5 percent of gross domestic product from 16.4 percent in the same period last year.

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.

Recto added government owned and controlled corporations already remitted P95.9 billion in dividends as of October, up by 51 percent compared to the year-ago level.

The figure came after the DoF raised the corporations’ dividends share for the national government to 75 percent from 50 percent annually.