Declining oil prices prompt lowering of BOC revenue target

The Development Budget and Coordination Committee (DBCC) lowered the Bureau of Customs (BOC)’s revenue collection target for 2016 from P498.67 billion to P409 billion due to the decline in oil prices.

Out of the P409 billion, the BOC has to collect P402.5 billion in cash and P6.5 billion in the form of Tax Expenditure Fund (TEF). The TEF revenues were earlier described to be non-cash and are merely collections on paper. It is a subsidy released by the Department of Budget and Management (DBM) to government-owned and controlled corporations (GOCC) and state-run companies mainly to settle customs duties and other taxes arising from the importation of goods. In a statement issued by the BOC yesterday, the lower collection target this year was attributed to the continuous decline in oil prices and level of imports during the recent months. Revised collection targets have been set for each of the 17 district ports for this year. Port of San Fernando was tasked to collect P2.1 billion; Port of Manila (POM) P66.9 billion; Manila International Container Port (MICP) P121.3 billion; Ninoy Aquino International Airport (NAIA) P36.1 billion; Port of Batangas P92.3 billion; Port of Legaspi P201 million; Port of Iloilo P2.1 billion; Port of Cebu P17.2 billion; Port of Tacloban P164.3 million; Port of Surigao P10.4 billion; Port of Cagayan de Oro P9.8 billion; Port of Zamboanga P186 million; Port of Davao P11.3 billion; Port of Subic P15.1 billion; Port of Clark P1.4 billion; Port of Aparri P242.8 million; and Port of Limay P26.2 billion. With BOC’s actual January to June collection reaching P190.6 billion, the remaining amount to be collected for this year to reach the new target is P218.4 billion.