TRAIN law exceeds revenue target

  • Page Views 1444
  • In first quarter

    The government registered a net revenue gain in the implementation of the Duterte administration’s first tax reform law in the first three months of the year owing to higher taxes remitted by the tobacco industry.

    Instead of a net loss of at least P3.2 billion in January to March, the Bureau of Internal Revenue (BIR) reported to the House ways and means committee that the government generated P12.5 billion in additional revenues from the tax reform for acceleration and inclusion act (TRAIN).

    Based on the BIR data, the main driver of the above program revenue collection from TRAIN was the excise tax on cigarette products.

    The government only programmed P686.1-million tax revenues from cigarettes, but the BIR collected P14.97 billion from January to March this year.

    BIR Assistant Commissioner Alfredo V. Misajon explained the higher than expected revenues from cigarettes is attributable to the stable consumption of tobacco products despite the several increases in excise tax rates.

    “We noticed that although we increased the rates on the excise tax of tobacco, we’ve seen that the consumption of tobacco had not been tapering off because maybe it’s just the initial months of the implementation,” Misajon said.

    The BIR official also said that some cigarette manufacturers had not raised their retail prices despite the increase in excise levies.

    Aside from tobacco, the BIR also surpassed its P409.4-million collection target on stocks transaction of traded stocks by 175 percent to P1.12 billion, while on capital gains of non-trade stocks by 29 percent to P1 billion against the target of P777 million.

    Revenues from documentary stamp tax, likewise, exceeded the goal of P7.6 billion by 23 percent to P8.72 billion, while foreign current deposit unit raised P159.71 million, surpassing the P99.72- million goal by 60 percent.

    Excise tax on coal also breached the target of P166.62 million, generating a total of P305.8 million at end-March, while donors tax amounted to P61.06 million, a reversal of the expected P376.19 million in revenue loss.

    The government also missed its expected foregone revenues from the reduction in personal income tax (PIT) rate and estate tax.

    In the first-quarter, the government’s forgone revenues from PIT amounted only to P23.34 billion, below the P36.04 billion program, while estate tax losses reached P225.23 million, lower than the P361.72-billion ceiling.

    C. Leyco, mb.com

    Share

    New Posts Recently publish post More

    • 17 September 2020
      14 hours ago No comment

      B.C. election looms, while chance of federal election lessens

      B.C.’s next provincial election is scheduled to happen on October 16, 2021. But it could take place earlier if the B.C. NDP government of Premier John Horgan decides to call an election earlier. Or if the Horgan government loses the confidence of the legislative assembly. By many indications, Horgan ...

    • 17 September 2020
      14 hours ago No comment

      Dr. Theresa Tam’s update on COVID-19 

      Ottawa, ON – Public Health Agency of Canada In lieu of an in-person update to the media, Dr. Theresa Tam, Canada’s Chief Public Health Officer, issued the following statement: “There have been 138,803 cases of COVID-19 in Canada, including 9,188 deaths. 88% of people have now recovered. Labs across ...

    • 17 September 2020
      14 hours ago No comment

      Prime Minister announces next steps for Safe Restart Agreement

      As we move into the fall and the world continues to deal with the impacts of COVID-19, the Government of Canada remains focused on keeping Canadians safe and healthy, while continuing to ensure they have the supports needed during this global health and economic crisis. The Prime Minister, Justin ...

    • 17 September 2020
      14 hours ago No comment

      Amal Clooney urges PH to protect press freedom, honor international commitments

      International human rights lawyer Amal Alamuddin-Clooney on Tuesday urged the Philippine government to protect the free press and honor its international commitments on human rights. Speaking before Philippine business leaders in an online forum, Clooney said, “if you want to have a functioning democracy, protect the press. To protect ...

    • 17 September 2020
      15 hours ago No comment

      Kapamilya stars dominate TV5’s new entertainment lineup

      Kapamilya actor Piolo Pascual and Miss Universe 2018 Catriona Gray will be hosting the “Sunday Noontime Variety Show” on TV5. Directed by Johnny Manahan, the show is one of the new shows from Brightlight Productions after it secured blocktime slots with the Manny V. Pangilinan-led network. With the new shows, ...

    %d bloggers like this: