BoC Confident of Exceeding Revenue Target Despite Potential Excise Tax Suspension

THE Bureau of Customs (BoC) said it remains confident it will surpass its P1.011-trillion revenue target this year even with a looming suspension of excise taxes on kerosene and liquefied petroleum gas (LPG). “We are looking at the possibility of hitting the target, and on top of that we will exceed it by P10 billion,” Customs Commissioner Ariel F. Nepomuceno told reporters on the sidelines of the House budget plenary debates on Tuesday. Collections in the first eight months hit a record P664.776 billion, up 7% year on year and exceeding the target by 0.8%. As of the end of August, the BoC is at 65.8% of its target for the year. The bureau needs to collect around P346.22 billion in the last four months to hit the target. “We still have four months, and I think we can do P90 billion on average (per month),” he added. Mr. Nepomuceno said he attributes the BoC’s performance to stricter assessments, continued efforts to counter misdeclaration and undervaluation, and the seasonal increase in import volumes during the “ber” months. “Volume peaks in October and November,” he added. The peso closed at a new all-time low of P62.86 against the dollar on Monday, weakening by 18 centavos from its P62.68 finish on Friday, which was its previous record low. However, the peso recovered to end at P62.835 against the dollar on Tuesday. “Although, I think it evens out. The prices are increasing, so that should mean higher collections, but consumption is going down because it is becoming more expensive… It adjusts somewhere,” he said. Asked about the potential impact of soaring crude oil prices, which may prompt the government to suspend excise taxes on kerosene and LPG for a second time, Mr. Nepomuceno said the target remains achievable even with such a suspension. “It has an impact but it is manageable,” he said. “We’re confident that we will still hit the target by continuing our strict… assessments and full declaration of import values,” he added. Finance Secretary Frederick D. Go said on Friday that he is ready to recommend to the Development Budget Coordination Committee the suspension of excise taxes on kerosene and LPG once the Department of Energy (DoE) issues a certification. As of Sept. 11, the DoE said the 30-day average Dubai crude oil price stood at $99.41 per barrel, breaching the $80-per-barrel threshold set in place to trigger government relief action. In April, President Ferdinand R. Marcos, Jr. issued Executive Order No. 114-2026, which suspended excise taxes on the specific petroleum products. The suspension was lifted on July 8 after the DoE certified that the average Dubai crude oil price between June 1 and 30 fell below the threshold to $79.45 per barrel. — Justine Irish D. Tabile