THE Bureau of Internal Revenue (BIR) RR 16 reported a total tax collection of P2.78 billion in revenues for the second quarter of 2019, a nine percent increase in collection made in the same period in 2018.
According to the National Economic Development Authority (Neda)-Northern Mindanao, the raise in the tax collection of the region was due to the posted increases of the receipts from income, value-added, percentage and excise taxes.
Income tax collections accounted for 61 percent of the total collections, registering an increase of 12 percent.
Neda said this was brought about by the increase in remittance on withholding tax on compensation, resulting from higher salaries and bonuses of government employees.
The increase of newly hired employees, particularly in the construction sector, attributed to the Build Build Build program of the current administration, also contributed to the increase of tax receipts, Neda-Northern Mindanao added.
Receipts from excise taxes and percentage taxes posted the highest increases at 90 percent and 61 percent, respectively.
Higher collection of excise taxes was attributed to the increase in quarrying mineral extraction activities of major mining firms in Northern Mindanao during the reference period.
The positive performance of the percentage tax collections, on the other hand, was due to higher availment of loan services from banks and other financial institutions.
Value added taxes collections, likewise, improved at around seven percent, contributed to the increased level of sales/revenue of the wholesale and retail; transportation and storage; human and social work services; and construction sector.
Cagayan de Oro City remained as the top district collector with 54 percent share of the total tax receipts valued at P1.51 billion.