Tuesday, January 02, 2007 VAT revenue fails to breach P1B mark By Carlo P. Mallo
VALUE Added Tax (VAT) revenues only reached P980-million for January-November 2006 in Davao City, records at the Bureau of Internal Revenue (BIR) showed.
The major contributor to VAT are the wholesale and retail sector contributing a total of P423,004,535.49. This includes, but is not exclusive to purchases in the supermarkets, department stores, restaurants, and similar establishments.
Coming in at far second is the service sector, contributing P142-million.
The months of July, April, and October raked in the most revenues, with amounts more than P100 million each. While February and May struggled with less than P80 million each.
BIR is confident that VAT reforms have indeed produced the revenues that are expected of it, if not more. The bureau is also expecting to have a surge in VAT revenues for the month of December, as people spend more during the holiday season. VAT was increased in 2005 from 10 percent to 12 percent in order to suffice the funds needed by the government for its various projects.
