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Tuesday, February 07, 2006
Expanded VAT boosts tax collections in Kalinga, Apayao
TABUK, Kalinga -- The substantive collection of taxes last year in Kalinga and Apayao provinces is credited to the 10 percent expanded value-added tax (VAT) collection.
Daisy Quirino, revenue district officer of the Bureau of Internal Revenue (BIR), said the 15 percent increase or P18 million credited in their collection is part of the 10 percent e-VAT implemented in November last year aside from regular taxes paid to the BIR.
BIR records showed they have surpassed their tax collection from P118.8 million in 2004 to P136.6 million last year. In November and December 2005 alone, P22 million was generated from 14 municipalities of Kalinga and Apayao provinces, including collections from two revenue sources.
Quirino said a P3.8 million or three percent goal was achieved in 2005 from their goal of P132.7 million. "I am optimistic this accomplishment will be repeated this year as the 12 percent e-VAT is being implemented. Taxes from gasoline stations, business establishments and professional practitioners covered by e-VAT could contribute to achieve our 2006 target expected to be raised by eight percent," she said.
She however lamented that many taxpayers are falsely declaring their income, not paying right taxes, and not paying on time. With the problem, she said the BIR is conducting surveillance on tax evaders while collaborating with the local government unit's (LGU) one-stop shop tax collection centers to collect more taxes.
A total of P52 million was collected by 14 municipal LGUs. Among them is Kabugao in Apayao, which posted the highest in tax collection in 2005 with P15 million followed by Tabuk with P11.2 million. The lowest is Pasil, home of the world-class Batong-Buhay Gold Mines, with only P638,592.72.
Luna collected P6.4 million; Calanasan, P3.5 million; Flora, P2.8 million; Pinukpuk, P2 million; Conner, P1.9 million; Pudtol, P1.7 million; Rizal, P1.7 million; Balbalan, P1.6 million, Lubuagan, P1.3 million; Sta. Marcela, P1.1 million; and Tinglayan raised P1 million.
Tanudan remits directly its collection to an accredited agent bank because the BIR has no collection agent assigned to the area.
Added to the district income of the two provinces are the P20.5 million derived from accredited agent banks and the P64 million tax remittances advice from government agencies.
To raise the needed fund to pump prime local economy, Quirino called on all local taxpayers to declare and pay the right taxes. She, likewise, appealed that as a citizen, "it's our duty and obligation to pay taxes as it is the basic component of citizenship."
The BIR official expects an increase in tax collection this year with the full implementation of e-VAT. The 2006 e-VAT will be used to build at least 2,000 classrooms, provide health insurance premiums to 3.1 million indigents, reforest 9,190 hectares of forestlands and build 1,012 kilometers of farm-to-market roads.
He joined other fund managers on their call for citizens to sacrifice a little while e-VAT is coming in to rescue the country from fiscal deficit.
Budget Secretary Gary Teves said the two percent increase in VAT would wipe out the country's budget deficit two years earlier or by 2008 instead of original target of 2010.
The expanded VAT law entails a little sacrifice in the short run but lasting rewards in the long run in the form of more jobs and livelihood facilities, better social services, more infrastructure and less debt.
The government is doing its best to provide safety nets and cushioning the impact of e-VAT on the poor such as removal of excise tax on oil and energy, fuel discounts for public utility jeepneys on February 14, close watch on prices of prime commodities and strict implementation of fare discounts for students and senior citizens.
On other measures, the government is going after tax cheats, smugglers and other economic saboteurs as reflected in dramatic increase in revenue collections. Highest budgetary priority will be given to education, micro-financing, housing, land reforms, public health and other poverty alleviation measures. (PB)
(February 7, 2006 issue)
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