THE Bureau of Internal Revenue is optimistic of meeting the collection target of P1.829 trillion this year despite the threats of mining closures affecting tax collection efforts by the government.
BIR Commissioner Caesar Dulay downplayed the significant impact of the mining closures to tax collection campaign, saying the agency could recover from other tax sources that might be lost due to shutdown of mining operations.
“… Maybe [there could be a] dent on excise but we are going to recover on income and all the other VAT [value-added tax]. [It just needs] more strict implementation so if there is any dent, then we will try to recover it,” Dulay said.
BIR plans to collect P1.829 trillion this year, or 13 percent higher than P1.620 trillion in 2016.
Early this month, Environment Secretary Regina Lopez announced that out of the 41 metallic mines in the country, 21 would be closed down, six to be suspended and only 12 passed a mining audit. But on Feb. 10, a presidential spokesman said Malacanang would observe due process before shutting down or suspending 28 mining operations in 10 provinces.
Finance Secretary Carlos Dominguez said aside from employment, local government finances and the sustainability of the economy might be affected by the decision of the government to close down and suspend the operations of these mining companies.
Dulay the agency would also “hire more people to do the collection.”
Meanwhile, Dulay clarified that the agency was not singling out homegrown cigarette manufacturer Mighty Corp. in its investigation on the alleged use of fake cigarette tax stamps, saying the agency was looking at the proliferation of fake stamps that affect all the manufacturers.
“… That is why I am planning to meet with them and for them to give their recommendations. That is misinterpreted, that we are singling out Mighty, we are not singling out Mighty. What we are trying to do is look at the root and the source of fake stamps so we will invite all the cigarette manufacturers,” Dulay said.
“… We will just finish our tax campaigns and then they should be expecting an invitation from us for dialog on the fake stamps,” he said.
Dulay said earlier the agency had already sent letters of authority to Mighty and other cigarette companies after receiving reports that fake tax stamps for cigarettes were being sold in the market.
Data from the agency showed that total excise tax collections last year increased to P163.5 billion from P158.3 billion a year ago. But despite the increase in the total excise tax, collections from tobacco products declined to P91.6 billion in 2016 from P99.5 billion a year ago.