2000 | Collection Performance |
Tax Returns Filed | Revenue
Programs | Tax Statistics
BIR COLLECTION PERFORMANCE, CY 2000
CY 2000 total internal revenue of P 360.802 B surpassed its 1999
collections by P 19.482 B despite the continuing effect of the
economic and political crisis. Compared to the bureauís goal of
P 397.764 B, this yearís total revenue collection represented
a 90.71% level of attainment.
by the National Statistics Coordination Board (NSCB), GDP at current
prices for CY 2000 posted a 10.9% growth which is lower than the
11.7% growth recorded in CY 1999.†
The growth of the industry sector contributed positively
to the collection of the bureau with at least two (2) subsectors
initiating gains in tax collections.†
The transport and communication sector which grew by 24.9%
in 2000 compared to 14.1% in 1999 while the manufacturing sector
exhibited a 15.8% growth this year vis-a-vis 10.5% growth last
share to the total National Government Tax Revenue of 460.034
B† reached 78.43%.
Bureau realized a tax effort of 10.92% in 2000.
BY MAJOR SOURCES
on Net Income and Profit registered the highest contribution at
56.50% of the total tax revenues followed by Excise Taxes and
Value Added Taxes at 17.09% and 14.75% shares, respectively.
Collection from Taxes on Net
Income and Profit and Other Percentage Taxes exceeded the 1999
collection while Value Added Taxes, Excise Taxes and Other Taxes
did not surpass previous yearís collection. Shown below is the
table on the comparative collection and goal for CY1999-2000.
tax collections performed positively compared to 1999 by
19.482 B or 10.77%. This could be credited to:
Robust growth in collection
from P 3.567 B last year to P 5.766 B this year from the
communication sector particularly in the subscriber base of
wireless services and the fusion of telecommunication, information
technology and cable services of major firms.
Industry sources say the
tight race among telecommunications firms to corner a bigger
share of the mobile phone market resulted in a significant increase
in cellular phone users.
Increase in withholding
tax remittances of various taxpayers is due to the higher compliance
to withholding tax laws by private sectors, other withholding
agents and government agencies.
Excise tax collection from
alcohol, tobacco and miscellaneous products increased prior
years collection by 3.70%, 5.36% and 9.96%, respectively,
The effect of the 12%
automatic increase in tax rates implemented last January 1,
2000 particularly on distilled spirits and fermented liquors,
both in terms of removals and cash collections.
The effect of 12% automatic
increase of specific rates in cigars and cigarettes, that despite
the decrease in removals of medium and high priced brands of
cigarettes, collections increased.
The huge demand for commercial
vehicles prompting the manufacturers to introduce new automobile
models/brands from companies like Ford Motor Company, Honda
and Nissan Phils. For CY 2000, automobile sales increased
by 6.42% or 28,410 units this year from 26,697 units of last
The collection from other
percentage tax is higher than last years collection by P
2.457 B or 11.15%. The positive performance is due to:
Based on the National
Statistics Coordination Board (NSCB) report, GDP on bank and
non-banks at current prices grew by 3.9% and 7.6% respectively,
compared to the same level last year.
Withholding tax collection
from National Government Agencies increased by 105.57%
due to the implementation of Joint Circular No. 1
2000 re: Tax Remittance Advice System.
On the other hand, the negative
performance of other tax types may be explained, as follows:
Taxes withheld from bank deposits
and capital gains tax were 6.99% and 6.41% below the 1999
collection. The negative growth was evident in the:
- Lower turnover of capital gains tax
returns filed for the period by 8.20% (10,932 returns) compared
to last years turnover.
- Depositors availment of
the Double Your Money in 5 Years promotions of the
banks, in which the interest is exempt from final withholding
Decreases in collection of
petroleum products by 5.62% compared to previous years collection
were strongly linked to:
The shift from leaded
gasoline to unleaded gasoline in Metro Manila that meant a decrease
of P 1.00 per liter in taxes collected.
The decrease in sales
of the three major oil companies was affected by increase in
importations of the new players in the market subject to custom
Excise tax on imported
finished petroleum products previously paid to the BIR is now
being collected by the Bureau of Customs.
from Value Added Taxes and Other Taxes registered decreases of
3.52% and 4.19%, respectively over last years
collectionwhich were caused by:
- Economic slowdown and peso devaluation.
As reported by NSCB, the gross value added of construction
at current prices deteriorated from 3.5% in 1999 to 0.4%
in 2000. Specifically due to the zero growth of public
construction. Likewise, the slump in real estate is noted.
- The hostage crisis and the problem
of a resurgent Moro separatist insurgency in Mindanao.
- The decrease in the transfer tax collection
due to low turnover of tax returns filed from 39,514 filers
last year to 38,764 filers this year.
Total Collection for CY
2000 by Implementing Group amounted to P 360.80 Billion which
is P 19.64 Billion or 5.76 % more than that of CY 1999. Collection
from Regional Offices registered the highest increase compared
to 1999 by 9.38%, followed by Excise Taxpayers Service at 2.97%
and Large Taxpayers Service at 2.75%.
Implementing Offices in
the National Office namely Large Taxpayers Service (LTS) and
Excise Taxpayers Service (ETS) generated P 196.94 Billion representing
54.58 % of the total collection by implementing group. Of the
collection from National Office, LTS contributed 32.82% while
ETS share was 21.77%.
RR No. 8 - Makati delivered
11.59 % followed closely by RR No. 6 - Manila with 11.54 %.
COLLECTION BY IMPLEMENTING GROUP
The combined efforts of
the LTS, ETS in the National Office, and Regional Offices in
Manila and Makati raised 77.71% of the Total Collection by Implementing
Compared to previous year's
collection, seventeen (17) out of twenty (20) Implementing Offices
increased their collection in CY 2000.
Growth in collections
of revenue regions ranged from 5.18 % to 56.68 %.
RR No. 14 - Tacloban City
registered the largest percent of excess at 30.43 % over the
assigned collection goal.
COLLECTION BY MANNER OF PAYMENT
- Cash collections from voluntary payment amounted
to P 358.87 Billion in CY 2000 representing 99.46% of the total
- This year's collection from voluntary payment
showed an P 19.33 Billion or 5.69% increase from that of CY 1999
collection of P 339.53 Billion.
- This improvement may be attributed to the year-round
dialogue with taxpayers, continuing tri-media information/education
campaigns, and simplified monitoring of withholding tax payments
through Tax Remittance Advice (TRA) from the National Government
Agencies (NGAs) as prescribed in Revenue Memorandum Order No.
- Collections generated from preliminary/final
assessments and delinquent accounts amounted to P 1.81 Billion
and P 0.12 Billion, contributing 0.50% and 0.03%, respectively,
to the total collections.