Total collections of the Bureau for the first quarter of 2015 reached P92.2-Billion, an increase of 6.6 percent over the P86.5-Billion collected in the first quarter of 2014.
Cash collection was P87.3-Billion in the first quarter of 2015, up by one percent from P86.5 billion in the same period in 2014. Non-cash collection—representing collections from imports of government agencies paid through credits to the BOC’s account—was P4.9 billion, compared to zero in 2014.
The 53% decline in oil prices from the first quarter of 2014 to the first quarter of 2015 was the main factor in the slowdown in collection growth. Although oil import volumes rose by 19.5%, the sharp decline in oil prices, and shifts in the import mix toward higher crude oil imports at the expense of higher value finished products, led to a 38% decline in collections from oil products.
Nonetheless, collections from imports apart from oil products continued to grow strongly, partly offsetting the fall in collections from oil. Collections from non-oil imports grew by 24%, as imports of motor vehicles, food, iron and steel, machinery, and chemical compounds all showed very strong growth.
“Developments in global oil markets are obviously out of our control. We are confident that collections from imports apart from oil will remain robust; however, it is difficult to imagine a scenario under which oil prices will recover sufficiently to restore collection growth to last year’s levels of 20% and above,” said Customs Commissioner John Sevilla.