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Thursday, March 16, 2006
Tax collection efficiency a challenge - DOF exec
The National Government expects higher tax collection to bring down the country’s budget deficit and lower its borrowings, said Finance Secretary Margarito Teves.
However, improving tax collection efficiency and debt management remains to be challenges, he said in his report during the 2005 Yearend Domestic Roadshow last Tuesday at the Waterfront Cebu City Hotel and Casino.
Other challenges the government is facing include, intensifying tax administration, strengthening the management of government-owned corporations and government assets institutions, he said.
Not satisfied
“With the increased expanded value-added tax rate from 10 percent to 12 percent, we expect about P75 billion in additional revenues from this hike. But we’re not satisfied with that and we shall continue to improve on the efficiency of other tax measures,” he said.
In a statement, he said the national budget deficit went down to P146.5 billion last year, the lowest record in four years and 18.6 percent higher than the target.
“The efforts to improve tax collection efficiency have been encouraging. The revenue collections for January this year reached P72.6 billion,” he said.
Higher collection
The Bureau of Internal Revenue collected P49.5 billion in January this year, 18 percent higher than its collection in the same month last year, Teves said.
The Bureau of Customs, on the other hand, collected P13 billion, or P900 million more than its target and 23 percent higher than its collection in January last year, he added.
The National Government aims to minimize tax leakage and broaden tax base, he said.
“On debt management, we will continue to optimize official development assistance financing, pursue financing structures that will reduce borrowing costs and diversify currency mix,” he said.
Fifty-eight percent or P310.2 billion of the National Government financing this year of about P531.6 billion will be locally sourced and the rest will be sourced externally, he added.
“By 2008, we hope to have a balanced budget, which means, our expenditures will be the same as our revenues due largely to the implementation of the expanded value-added tax and other revenue enhancement measures,” he said.
He said the country has set some “ambitious” goals, which will only become possible by the people’s sustained support.
“Someone said that the door of opportunity wouldn’t open unless you do some pushing. I may just add that the door would open much faster and wider if we all push together and in the same direction,” he said. (ALC)
For Bisaya stories from Cebu. Click here. (March 16, 2006 issue)
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