The Philippine government posted a surprise budget surplus in April - the first in four years - after record monthly tax collections were achieved following a campaign against prominent tax evasion suspects.
According to finance secretary Cesar Purisima, the government reported a budget surplus of 3.3 billion pesos ($61 million) in April, as tax collections and other revenues increased by 9% from a year ago to 82.7 billion pesos.
The Bureau of Internal Revenue, which generates two-thirds of government revenue, saw its tax collections surge by 18.7% year-on-year in April ahead of the month's tax filing deadline. The BIR also filed a string of tax evasion charges against wealthy individuals and high profile celebrities in March.
Overall, income taxes paid by the deadline soared by 44% from a year ago - an all-time high in a country which has one of the lowest tax collection rates in the region at about 12.5% of GDP.
Speaking before employees of the Quezon City branch of the BIR, President Gloria Arroyo congratulated staff on their recent collection efforts and praised programmes such as Revenue Integrity Protective Services (RIPS) and Run After Tax Evaders (RATE).
"Congratulations to all of you in the BIR. This is one of the highest growth rates we've seen so far, it speaks clearly of your dedication, your team work and your partnership among yourselves and with several offices in the government," she said.
While the budget surplus is unlikely to be repeated in the near term, the government has expressed confidence that its revenue-raising programmes will be enough to reduce the full-year budget deficit to below the original estimate of 180 billion pesos.
The bicameral Philippine legislature, which had been at odds over plans to raise additional revenues, recently approved a three-year hike in corporate tax to 35% from 32% and a 2% increase in value added tax.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment