Policy changes tagged as Customs misses target
THE Bureau of Customs’ (BoC) collections for August totaled P78.91 billion, 2.52-percent short of its P80.95-billion target for the month, BoC chief Bienvenido Rubio announced.
Rubio cited two reasons for the shortfall: Executive Order 62, which cut rice import duty rates from 35 percent to 15 percent, causing a revenue loss of P2.35 billion; and the slashing of the motor vehicle tax to zero percent, result
ing in a P1.034-billion deficit.
However, Rubio acknowledged these government policy changes have economic and consumer benefits, making essential goods more affordable.
At the same time, he said, “The BoC is actively addressing these challenges and working diligently to bridge the revenue gap, thereby supporting the country’s fiscal health and stability.”
He added the bureau is still “poised to sustain its positive revenue trajectory.”
The national government is targeting to earn P4.3 trillion in revenues for 2024, with Customs accounting for around P1 trillion.
So far, the bureau has exceeded its revenue target from January to August. Initial reports said it had collected P614.781 billion, 0.9 percent more than its P609.592billion target for the period.
This is also 5.7 percent (or P33.290 billion) higher than the P581.491 billion collection in the same period last year.
“The significant revenue growth underscores the BoC’s effective strategies in valuing goods and ensuring precise import duty assessments,” Rubio said. “Through stringent customs compliance, the BoC has effectively minimized under-declaration and misclassification, enhancing efficiency, transparency and overall fiscal management.”