BIR To Collect P1.95T by End of Year Thru TRAIN

The Bureau of Internal Revenue (BIR) is expected to collect Php1.95 trillion by December this year through the implementation of the first package of the Comprehensive Tax Reform Program (CTRP) under the Tax Reform for Acceleration and Inclusion (TRAIN) law by the Duterte administration.

Lawyer Sa’Aduddin L. Macarambon, CPA and supervisor of the assessment section of Revenue District Office No. 98 in Cagayan de Oro City during Talakayan sa PIA on August 30 at SM City Mall said they are tasked to collect Php2 trillion and Php60 billion for 2018 but for the first semester, but they fell short with only 46-47 percent from target collection.

“For December, we are assigned to collect Php1 trillion Php95 billion. We hope to collect that for the remaining months of the year,” he said.
Included in package one of the CTRP is the lower income tax rates for employed individuals.

Macarambon said, employees earning 250,000 or below per annum are now exempted of income tax; whereas before TRAIN law, these employees have to pay at least Php 50,000 income tax.

He said, this is additional net income pay especially for employees. This translates to Php12 billion additional money in the pockets of employees.

Changes in the tax rates also include reform in the VAT system, simplification of transfer taxes, state and donors tax at 6 percent, increase in the excise tax on the petroleum products, automobiles and mineral products, excise tax on cosmetic surgeries and sweetened beverages.

There are also products exempt for excise tax under TRAIN.

Macarambon said this includes 100 percent natural juices, soluble coffee (pre-pack mix) 3-in-1 and all milk products.

Although prices have increased but Macarambon explained TRAIN is not solely the reason. There are also other factors that triggered these price increases.

He said, for example, there is spike of oil prices in the world market, rebound of dollar which resulted to lower peso and low agriculture production because of typhoons, among others.

The principle of taxation is not only to generate revenue. Macarambon said one of the non-revenue purposes of taxation is to discourage people from buying unhealthy products and unhealthy foods especially with sin products such alcohol and tobacco or cigarettes.

Macarambon shared we have remaining five more packages for TRAIN.

TRAIN two includes corporate income tax. Package 1+ is tax amnesty. Package two plus is reforms in taxation of sin taxes. Next is royalty on mining corporations. Package 4 is real property valuation and package five is capital income taxation reforms.

This is the golden age of infrastructure. Macarambon said the goal of the TRAIN law is to fund BUILD, BUILD, BUILD project of the government and increase budget on social services like health, education and other programs to alleviate poverty.

Expected under TRAIN law package one is the incremental revenue of Php100-Php130 billion.

If all packages of TRAIN is implemented, the government is expected to gain Php270billion annually. (JMOR/PIA10)