BIR posts highest tax effort since 2000
As of September 2013, the National Government posted a Deficit-to-GDP ratio of 1.2%, way below the projected 2.0% for 2013. The budget deficit was P101.2 billion, P2.7 billion lower compared to the same period last year and well within the target of P144.5 billion for the first nine months of 2013.
Revenue collections for the first nine months of 2013 reached P1.267 tn, a 13.2% increase from the comparable collections recorded in 2012. For the same period, tax effort for the National Government stood at 13.7%, a 0.6 percentage point (ppt) increase from the same period in 2012.
Notably, the BIR tax effort rose to 10.8%, a 0.6 ppt increase from the same period last year. This is the highest BIR tax effort since 2000. BIR collections grew by 16.2% compared to the same period last year, much faster than the nominal GDP growth of 9.3%.
Excise tax collections on alcohol and tobacco products, which increased 41.0% and 83.5%, respectively, largely contributed to the growth in BIR collections owing to the implementation of RA 10351 or the Sin Tax Reform Law this year.
Actual disbursements amounted to P1.368 trillion, an 11.8% increase compared to the same period last year. Revenues grew faster than disbursements over the same period last year.