Tuesday, September 25, 2018

Northern Mindanao tax collections down by 30%

THE Bureau of Internal Revenue (BIR)-Revenue Region 16 reported a total tax collection of P2.18 billion in revenues for the first quarter of this year, a 30 percent decrease in collection made in the same period in 2017.

According to the National Economic Development Authority (Neda)-Northern Mindanao, the decline in the tax collection of the region was due to the implementation of the Tax Reform Acceleration and Inclusion (Train) law.

However, Neda said the reduction was anticipated as the cuts in the withholding tax on income began to take effect in the reference quarter.

The collection from income taxes accounted for 58 percent share of total tax receipts.

All revenue districts posted declines with Cagayan de Oro City, which accounted for 52 percent of total collections, recording the steepest decline by 40 percent. This is followed by Gingoog City with 30.7 percent; Iligan City, 24.6 percent; Ozamiz City, 15.4 percent; and Bukidnon, 4.1 percent.

At the national level, however, Neda-Northern Mindanao said tax collections increased by 14 percent, year-on-year, as higher excise tax on commodities, especially on oil, sweetened beverages, tobacco, and motor vehicles, more than offset the decrease in income tax receipts.