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THE reduced tariffs on rice and battery electric vehicles pulled down the Bureau of Customs’ (BOC) revenue collections to P690.842 billion as of the end of September 2024.

In a statement on Sunday, the BOC recorded P6.089 billion in revenue losses from rice imports due to the reduction of rice tariffs.

To recall, President Ferdinand R. Marcos Jr. issued Executive Order (EO) No. 62 on June 21, 2024, which reduced the tariff on rice to 15 percent from 35 percent in July and will take effect until 2028. The EO was issued to bring down rice prices to as low as P29 per kilo.

Since EO 62 also imposed zero-import duties for battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), plug-in HEVs, and specific parts and components, this further resulted in P2.901 billion in foregone revenues.

Despite this, the BOC managed to raise P690.842 billion in revenues from January to September 2024, based on preliminary data.

The collection is higher by 4.61 percent or P30.454 billion than the P660.388 billion amassed during the same period in 2023.

However, the BOC posted a shortfall in tax revenues, lacking by P3.046 billion from the Cabinet-level Development Budget and Coordination Committee’s (DBCC) target of P693.888 billion for the period.

For September 2024 alone, the BOC collected P76.061 billion, lower by 4.16 percent or P3.164 billion than the P79.225 billion recorded in the same month a year ago.

“Despite these challenges, the Bureau remains optimistic in achieving its revenue goal for the year,” the BOC stated, banking on other strategic measures to boost revenue collections such as post-entry audit and auction as non-traditional revenue sources.

The BOC hopes these efforts will not only help recover lost revenues but also position the Bureau for “sustainable growth” in the future.

“Our commitment to transparency and efficiency in customs operations empowers us to build a stronger economy for all Filipinos. Together, we are not just collecting taxes; we are investing in the future of our nation,” Customs Commissioner Bienvenido Y. Rubio said.

Last month, the BOC also fell short of achieving its revenue targets, collecting P78.908 billion out of the P80.945-billion goal for the month of August 2024.

This year, the BOC targets to collect P939.7 billion in revenues based on the DBCC’s fiscal program.

With EO 62 set to be reviewed this coming November, Agriculture Secretary Francisco Tiu Laurel Jr. said the Department of Agriculture would recommend increasing the tariff rate on rice if retail prices settle between P42 and P45 per kilo.

Source : businessmirror