VAT accounts for 62.9% of first-half Customs revenue – BusinessWorld Online
VALUE-ADDED TAX (VAT) accounted for 62.9% of Customs revenue in the first half, led by collections generated by non-oil imports, the Development Budget Coordination Committee (DBCC) said.
In its Midyear Report, the DBCC said the Bureau of Customs (BoC) collected P288.4 billion in VAT, which dominated its overall revenue of P458.8 billion for the six-month period.
VAT revenue rose 5.2% from the end of June.
“Such a rise is primarily driven by the 10.2% or P21.0 billion uptick in VAT collections for non-oil imports, but this was notably offset by the 10.2% decline in VAT collections from oil,” the DBCC said.
The value and volume of non-oil imports rose 10.9% and 1.6%, respectively, while petroleum product imports declined 8.7% by value and 2.1% by volume.
The DBCC said the value of oil imports tracked the decline in Dubai crude prices, the benchmark for petroleum products shipped to Asia. Dubai crude fell from a monthly average of $70.8 per barrel in the first half from $83.0 a year earlier.
“Recently, geopolitical tensions affecting global oil prices have eased, and the global oil supply has been outpacing demand, explaining the drop in Dubai crude oil prices,” it said.
Customs excise tax collections totaled P116.5 billion in the first half, up 2.5%, it said.
“Among the biggest contributors to the positive growth in excise collections was motor vehicles, at 16.5% or P3.2 billion,” it said, which tracked the 2.1% increase in vehicle sales for the first half as reported by the Chamber of Automotive Manufacturers of the Philippines, Inc. and Truck Manufacturers Association.
Customs collected P622.468 billion in the eight months to August, up 1.3% year on year. It is expected to collect P958.7 billion for the year and P1.285 trillion by 2030. — Aubrey Rose A. Inosante