BIR is aiming for a 13% increased consumption tax levy in 2021

The Bureau of Internal Revenue (BIR) is streamlining the requirements and procedures for applying for VAT refunds. – BW FILE PHOTO

The Bureau of Internal Revenue (BIR) is aiming to increase excise tax revenue by 13% this year as it expects economic activity to pick up as restrictions related to pandemics continue to be relaxed.

The BIR has set a target for collecting consumption taxes of P 332.102 billion for 2021, which is 12.6% higher than last year's target of P 294.91 billion. Excise tax collections from large taxpayers fell 7% in 2020 due to strict lockdown measures and the economic slowdown.

The BIR attributed the higher goal to the projection of the Development Budget Coordination Committee (DBCC), according to which the Philippine economy will be back on a growth path this year.

The collection of excise duties on tobacco products, alcoholic and sweetened beverages, fuel and motor vehicles accounts for 16% of the BIR's total collection target for the year.

The BIR has set a collection target of 2.081 trillion pesetas for 2021, which is 7% higher than last year's target of 1.94 trillion pesetas.

BIR Deputy Commissioner for Operations Arnel S.D. Guballa said in a text message that the office was "hopeful" that it would meet its 2021 collection target.

The agency aims to raise 984.65 billion pesetas from taxes on net income and profiThis corresponds to an increase of 31% compared to the previous year's target of 751 billion pesetas.

The VAT collection target has also been raised by 16% to Pesetas 405.25 billion, compared to Pesetas 350 billion in 2020.

The BIR aims to increase the collection of the percentage tax by 8.92% to 129.292 billion P and the other taxes by 23% to 166.05 billion P.

The targets have been calculated based on DBCC projections for gross domestic product (GDP) growth of 6.5 to 7.5% for 2021.


Meanwhile, the BIR said it was streamlining the requirements and procedures for applying for VAT refunds.

With Revenue Memorandum Order (RMO) No. 47-2020, which came into effect on January 19, the total number of documentation requirements for applicants claiming the VAT refund has been reduced from 39 to 30.

The number of documents from local offices that require certificationfiCations were also tailored five of 16 previously.

“Most notable under this RMO is the significant reduction in the number of documentation requests and the failure to submit photocopies of sales invoices or receipts for both purchases and sales of goods or services. Instead, the taxpayer claiming the VAT refund is only required to produce the original copies of these documents along with the corresponding scanned copies stored in a storage device, ”BIR said.

In addition, several documents that need to be certified or consularized / apostilled were no longer required or optional on the part of taxpayers.

The notarized affidavits were also shortened from five to two.


In a separate statement, the Customs Office (BoC) said its Post Clearance Audit Group (PCAG) expects to collect 12 billion pesetas from the 24 pending inquiry letters this year. Eighteen have applied for re-examination while the remaining eight have been referred to the Customs Legal Service.

When the importers were audited last month, additional duties and taxes of pesetas 191.38 million were levied.

"The BoC, through PCAG, is firmly committed to its mission and mandate to generate lawful revenue by determining the payment of reasonable duties and taxes as the nation prepares for economic recovery amid the current health crisis," she said. – Beatrice M. Laforga

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