MANILA, Philippines – Taxes levied by the Bureau of Internal Revenue (BIR) fell more than 10 percent in 2020 as the country continues to be affected by the coronavirus pandemic.
During the House Committee’s online meeting on ways and means, BIR Deputy Commissioner Arnel Guballa reported that the office had levied taxes of pesetas 1.956 trillion in 2020, which was lower than the 2019 tax collected by 2.186 trillion pesetas.
Taxes levied in 2020 decreased by 30.14 billion pesetas (10.53 percent less) compared to 2019, Guballa said.
The main types of taxes include income tax, value added tax (VAT), excise tax, percentage tax, and other taxes.
According to their report, the BIR was able to levy taxes of PTS 1.045 trillion in 2020, but this is almost 10 percent less than the previous year’s tax of Pesetas 1.155 trillion.
Taxes levied by other major types of taxes also decreased:
- VAT – down 13.46 percent (down 54.64 billion pesetas)
- Excise tax – down 6.68 percent (down 21.19 billion pesetas)
- Percentage – down 12.47 percent (down 16.69 billion pesetas)
- Other taxes – down 16.09 percent (down 27.94 billion pesetas)
One of the reasons given by the BIR is the closure of companies during the embargo period.
“If we compare the types of tax, the tax types collected in 2019, with a collection compared to the previous year, the result is a decrease of 10.53 percent or a total of P230 billion,” said Guballa.
“Kung ano yung economy 2020 na lockdown, it corresponds to the BIR’s collection of P1 1.1 trillion,” he added.
While taxes levied by BIR fell in 2020, the office was still able to beat its target.
BIR’s 2020 tax collection was set at only Pt.1.685 trillion, but the bureau was able to raise pesetas 1.956 trillion. Guballa said there has been an adjustment of her target due to the pandemic.
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