THE Bureau of Customs (BOC) will likely report a 7% collection shortfall for 2010 mainly due to changes in government policy.
Customs commissioner Angelito Alvarez said the bureau’s take could be P20 billion less than its target of P280 billion owing to reduced oil tariff and zero rice importation by the National Food Authority. The latter is the source of the tax expenditure fund (TEF), a vital part of the bureau’s collection.
“I am now focusing on our cash collection target since TEF is no (longer) revenue generating and is only meant to… facilitate government importations, especially rice,” Alvarez said.
BOC expects revenue losses of about P1 billion a month from reduced oil import tariff.
Executive Order 890 earlier cut tariff of oil shipments from member states of the Association of Southeast Asian Nations from 3% to zero.
For August alone, the BOC collected P17.84 billion, 33% or P8.87 billion lower than the goal of P26.71 billion.
From January to August, collections fell short by P4.54 billion from the target of P176.94 billion.