RP eyes P120 B from EVAT

Posted on July 22, 2008

RP eyes P120B from EVAT The government expects to collect P119.588 billion from the expanded value-added taxes (EVAT) this year, rising dramatically from last year’s actual collection amounting to P88.934 billion.

Finance Undersecretary Gil Beltran said the DOF expects a significant windfall collection of about P18 billion because of the increase in the prices of oil and petroleum products.

Beltran said government’s collection in 2007 were slightly higher than the target collection of P88.883 billion also because of the rise in oil and petroleum prices.

Thus far, Beltran reported that EVAT collections amounted to P42.918 billion in the first five months of the year. About 23.895 billion of this was collected by the Bureau of Customs (BOC) and P19.023 billion was collected by the Bureau of Internal Revenue (BIR).

For the whole of 2008, Beltran reported that the P119.588-billion target was broken down into P83.983 billion that would be collected by the BOC and P35.605 billion that would be collected by the BIR.

This year’s target EVAT collection, however, includes the P73.086 billion that would be collected from the sale of oil and petroleum products. About P36.662 billion represented VAT on crude and the rest, amounting to P36.424, would come from VAT on petroleum products.

The DOF and the Bangko Sentral ng Pilipinas (BSP) both oppose the lifting of the VAT on oil and petroleum products, saying that such a move would only benefit high-income households.

Monetary officials said exempting oil products from the VAT would affect investor confidence, especially with credit rating agencies already wary of the Arroyo administration’s on-going fiscal reforms.

BSP Governor Amando M. Tetangco Jr. said over the weekend that investors and analysts alike remained watchful of the continuation of the government’s overall reform package.

RP eyes P120 B from EVAT

Similar Posts

Comments

Recently Written

Archives

Categories

Real Estate Videos