BOC Sept collection expected to miss target

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THE Bureau of Customs (BOC) likely failed to reach its September collection target, the third straight month to have done so.

The continuing peso appreciation and application of zero tariff on oil imports have translated to a 24% dip in collection to P20.12 billion in September from the goal of P26.56 billion.

Preliminary data from BOC showed revenues from cash collections and the tax expenditure fund (TEF) missed targets, posting only P19.49 billion and P630 million compared to the goal of P23.36 billion and P3.20 billion, respectively.

The total shortfall may still narrow but not by much depending on final figures to be submitted by the ports of Manila and Cagayan de Oro.

Customs Commissioner Angelito Alvarez said the zero tariff on oil translates to P12 billion in foregone annual revenues for the bureau while for every one peso appreciation against the US dollar, the agency books a P3-billion loss.

BOC projections are based on a peso-dollar exchange rate of between P46 and P47. As of this writing (October 8, 2010), the foreign exchange rate was P43.435 to the dollar.

From January to September, the BOC raked in P190.84 billion, down 6.22% from its P203.51-billion target.

Total cash collection for the period amounted to P170.22 billion vis-à-vis the target of P172.20 billion while TEF was P20.62 billion against P31.30 billion.

For October, BOC’s adjusted revenue goal is P27.14 billion; for November, P26.93 billion; and for December, P23.1 billion. For the entire 2010, the target is P280 billion.