Customs Bureau Likely to Exceed July Revenue Target Due to Stricter Import Valuations

MANILA, Philippines — The Bureau of Customs (BOC) may have exceeded its July revenue target, Commissioner Ariel Nepomuceno said, as stricter assessments of inbound shipments boosted collections. Speaking to reporters last week, Nepomuceno said the agency likely surpassed its P82 billion goal for the month, with reforms aimed at curbing smuggling and improving the valuation of imports beginning to pay off by ensuring goods are taxed at the appropriate rates. “We’re importing practically the same items and practically the same volume,” he said. “What’s happening right now is the strict assessment.” “In fact, even if the volume decreases, the collection still increases because of the assessment,” he added. Customs sources its revenues from import duties, value-added tax (VAT) on inbound shipments and excise taxes, among other fees. The bureau has been tasked with collecting P1.01 trillion this year. Of that amount, P619.8 billion is expected to come from VAT on imports, P266.9 billion from excise taxes, P110.6 billion from import duties and taxes, and P16.5 billion from other fees. Apart from better assessments of imported goods, collections have also been supported by the peso’s depreciation, which has fallen to record lows amid war-driven market volatility. A weaker currency raises the peso value of imported goods, increasing the base on which import duties, value-added tax and excise taxes are calculated. Stronger customs collections come as the Marcos administration seeks to narrow the budget deficit, which is capped at P1.66 trillion this year. INQ