BURS aims to collect P44bn

Finance ministry figures seen by BusinessWeek indicate that the increase in Value Added Tax (VAT), Withholding Tax, as well as the new sugar tax, will help the BURS’ numbers this year. The BURS is the spearhead of the government’s efforts to boost budget revenues and return to fiscal sustainability following years of deficits under NDP11.

However, the tax inspector has fallen below targets set by the Finance Ministry in the past few years, collecting about P38 billion in 2019-2020 against a target of P41 billion. For the financial year ending on March 31, the BURS is expected to have collected P37.9 billion against a target of P44.4 billion, due largely to the impact of COVID-19. According to Finance Ministry documents, VAT collections in 2021-2022 are expected to reach P10.7 billion compared to a forecast P7.1 billion in the current financial year, while non-mineral tax should reach P13.8 billion from P11.8 billion. VAT is due to increase to 14% from April 1, while Withholding Tax will rise to 10%. Personal tax thresholds at the bottom of the scale have, however, been reviewed.