Bureau of Customs grows 22% in February amid reform efforts

Bureau of Customs grows 22% in February amid reform efforts

Government continues to register primary surplus at P28.4 billion

I am pleased to note that the Bureau of Customs grew 22% in February, its second monthly growth above 20% and its fourth straight double-digit growth since the President’s Customs Reform Program normalized in November. The country’s deficit figure improved by 17% from the previous year, as government revenues grew at 7% in February, faster than the 5% growth rate of expenditures. Netting out interest payments, the national government continued to register a primary surplus of P6.1 billion in February, bringing the year-to-date surplus to P28.4 billion.

The President’s Customs Reform Program continues to unlock the growth potential of the Bureau of Customs, and is a continuing narrative of how good governance translates into good economics.

BOC registers growth rate above 20%

In February, the national government collected P120.3 billion, growing at 7% in February, bringing the year-to-date figure to P269.1 billion. As of February, the Bureau of Customs (BOC) garnered P57.2 billion, growing 22% while the Bureau of Internal Revenue (BIR) collected P182.5 billion, growing at 8% from the comparable figure last year.

January-February interest payments decline to 23% of spending

Government expenditures meanwhile grew 5% in February, bringing the government’s January to February expenditures to P313 billion.

Given proactive liability management efforts of government, interest payments in February decreased by 11% compared to the same period last year. As a percentage of expenditure in the January to February period, interest payments improved from 26% in 2013 to 23% in 2014.

DOF continues push for transparency and accountability

Good governance and anti-corruption remain to be the top priority of the Aquino administration. In just the first quarter of this year, the DOF’s anti-graft arm, the Revenue Integrity Protection Service, was able to secure eight suspensions and dismissals of BIR and BOC personnel found to be living beyond their means.

The Aquino administration continues its commitment to doing systemic reforms in its revenue generating agencies through transparency and accountability measures. Aside from the monthly public disclosure of all import transactions by the Bureau of Customs, the DOF also made local government unit (LGU) fiscal sustainability scorecards available for public viewing via Iskor ng ‘yong Bayan (iskor.blgf.gov.ph), an initiative to make local treasurers and assessors accountable to the public for their local fiscal management.

The DOF continues to push for the following bills which will improve the country’s fiscal sustainability: the tax incentives management transparency and accountability (TIMTA) act, the rationalization of fiscal incentives, the reform of the fiscal regime for mining, and the customs modernization and tariff act (CMTA).

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National Government Registers P9.7 billion Budget Deficit for February

National Government Registers P9.7 billion

Budget Deficit for February

 

 

14 April 2014- The National Government (NG) budget deficit for February 2014 was recorded at P9.7 billion, a 17% or P2.0 billion improvement compared to figures for the same month a year ago. This brings the fiscal gap for the first two months of the year to P43.9 billion.

Revenues

Revenue collections in February reached P120.3 billion, a 7% or P7.9 billion increase over comparable figures last year. Tax collections accounted for P106.7 billion or 89% of the total, while the remaining P13.4 billion were from non-tax sources.

The Bureau of Internal Revenue (BIR) collections stood at P78.4 billion for February, representing a 5% or P3.8 billion growth over 2013 levels. The actual BIR collections for January-February amounted to P182.5 billion, 8% or P13.3 billion higher over the comparable period in 2013.

The Bureau of Customs (BOC) collections continued to register double-digit growth with a 22% year-on-year improvement in February. BOC was able to collect P27.4 billion for the month, bringing year-to-date collections to P57.2 billion, reflecting a 22% increment year-on-year.

The Bureau of the Treasury and other offices contributed P5.6 billion and P8.9 billion for the month of February, respectively.

Expenditures

NG disbursements amounted to P130 billion for February, a 5% or P5.9 billion increase over comparable figures in 2013. The combined expenditures for Jan-Feb amounted to P313.0 billion, which is an 11% or P31.0 billion increase over figures in the same period last year. Interest payments for February amounted to P15.9 billion, 11% or P2.0 billion lower compared with last year’s level.

Primary Surplus

Netting out interest payments, the NG primary surplus for February stood at P6.1 billion bringing the year-to-date surplus to P28.4 billion.

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OF-BLGF publishes online LGU performance scorecards for fiscal sustainability via Iskor ng ‘yong Bayan

OF-BLGF publishes online LGU performance scorecards for fiscal sustainability

via Iskor ng ‘yong Bayan

IN an initiative to promote transparency and good governance at all levels, the Department of Finance-Bureau of Local Government Finance (DOF-BLGF) is rolling out the Local Government Unit (LGU) Fiscal Sustainability Scorecard as a regular fiscal and financial management performance assessment of all LGUs. This scorecard is published online via Iskor ng ‘yong Bayan (http://iskor.blgf.gov.ph).

The LGU Fiscal Sustainability Scorecard, developed through the Department’s Fiscal Intelligence Unit (FIU) and the BLGF, takes into account key results areas of local revenue generation capacity, local collection growth, expenditure management, updating of Schedule of Market Values, and reportorial compliance of treasurers and assessors with the DOF and BLGF. This is in line with DOF’s mandate to supervise and monitor the revenue operations of LGUs.

The project is part of the DOF’s Transparency Initiative, which aims to use the power of data to drive performance. The project envisions that to improve LGU governance, increasing transparency and public accountability, especially on the level of local treasurers and assessors, is paramount. The LGU Fiscal Sustainability Scorecard aims to establish a regular fiscal performance assessment of LGUs. These scorecards are made publicly available so local treasurers and assessors are also accountable to the public.

Using official quarterly and year-end reports submitted by all local treasurers (through the electronic Statement of Receipts and Expenditures [SRE]) and assessors (through the Quarterly Report on Real Property Assessment) to the BLGF, the LGU Fiscal Sustainability Scorecard aims to institutionalize the regular publication of fiscal indicators and the performance review of LGUs in the spirit of accountability and good local financial housekeeping.

The preliminary performance review for 80 provinces and 121 cities covering 2009 to 2012 are published and available for download on Iskor ng ‘yong Bayan. In the interest of transparency, the SRE reports and the Schedules of Market Values used as basis in determining real property tax are also readily available for download through the said portal.

To learn more about the LGU Fiscal Sustainability Scorecard and access data on your LGU, click through to the Iskor ng ‘yong Bayan page at http://iskor.blgf.gov.ph.

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PDIC launches “Takbo sa Pagbangon ng Leyte”

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BIR charges delinquent Quezon City and Pasig City corporate taxpayers with willful failure to pay tax

BIR charges delinquent Quezon City and Pasig City corporate taxpayers with willful failure to pay tax

The Bureau of Internal Revenue (BIR) today filed separate criminal complaints with the Department of Justice against two (2) delinquent corporate taxpayers (including their responsible officers) for Willful Failure to Pay Taxes, in violation of Section 255 in relation to Sections 253 and 256 of theNational Internal Revenue Code of 1997, as amended (Tax Code).

Charged were GENESIS CAR CARE & SERVICE STATION, INC. (GENESIS), and F.U.N. PARTY, INC. (F.U.N.). Likewise charged were GENESIS’ Vice-President/Treasurer CORAZON L. TENG and F.U.N.’s Chairman/President EDISON ANTONIO C. MARIANO and Treasurer MA. CRISTINA I. MARIANO.

GENESIS is a domestic corporation engaged in the business of selling, distributing, and dealing of all petroleum, gas, or similar products, car care products and accessories, and operation of gasoline service stations, plants, and depots. Its registered address is at No. 42 E. Rodriguez Sr. Avenue, New Manila, Quezon City. GENESIS and its responsible officer CORAZON L. TENG were assessed a total deficiency tax liability for taxable year 2004 amounting toP26.08 million, inclusive of increments, broken down as follows: Income Tax (IT) - P15.79 million; Value Added Tax (VAT) - P10.29 million; and Expanded Withholding Tax – P2,195.80.

F.U.N. is likewise a domestic corporation located at GCW-2 Guanio Compound, C. Raymundo Avenue, Maybunga, Pasig City. It is engaged in the business of trading of goods such as toys, party favors and accessories on retail/wholesale basis. F.U.N. and its responsible officers EDISON ANTONIO C. MARIANO and MA. CRISTINA I. MARIANO were sued for deficiency taxes for taxable year 2007 in the sum of P23.45 million, inclusive of increments, broken down into: IT - P13.74 million; and VAT - P9.71 million.

BIR records of investigation showed that the abovementioned respondents were served the corresponding Letter Notice (LN), Letters of Authority (LOA), Subpoena Duces Tecum (SDT), Preliminary Assessment Notices (PAN), Final Assessment Notices (FAN) and Formal Letters of Demand (FLD) with Details of Discrepancies but failed to protest said assessments, hence making the same final, executory, demandable, and unappealable.

The subsequent issuance of the Preliminary Collection Letters, Final Notices Before Seizure, Warrants of Distraint and/or Levy and Garnishment, and Demands Before Suit were ignored by the respondents, as the said tax assessments remained unpaid. The respondents’ obstinate failure and continued refusal to pay their long overdue deficiency tax assessments, despite repeated demands, constitute willful failure to pay the taxes due to the government.

The cases against GENESIS CAR CARE & SERVICE STATION, INC., and F.U.N. PARTY, INC., including their respective responsible corporate officers CORAZON L. TENG, EDISON ANTONIO C. MARIANO and MA. CRISTINA I. MARIANO, are the 232nd and 233rd, respectively, filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. These are likewise RATE cases of Revenue Region No. 7, Quezon City.

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