Customs chief attributes August collection shortfall to decrease in TEF from rice importations

September 28, 2010 10:55 am 

MANILA, Sept. 27 — Bureau of Customs (BOC) Commissioner Angelito Alvarez attributed the shortfall in last month’s collection to the decrease in Tax Expenditure Fund (TEF) from rice importations.

“So far, I am not panicking because we cannot do anything about Tax Expenditure Fund. It’s not for us to determine,” he said.

The Office of the Commissioner, in charge of the TEF collection, only collected P22 million out of its P3.5 billion target for August.

With the deficit, Alvarez said the bureau may fall short by P20 billion to meet its target of P280 billion for the entire year.

Aside from the impact of the TEF, the other concern that could affect revenue target was the zero-percent tariff on oil products that was recently implemented.

Former President Arroyo signed an executive order imposing the zero-tariff to help lower the cost of oil products in the market.

EO 890 eliminated the three percent duty on crude oil and refined petroleum products imported from member states of the Association of Southeast Asian Nations (Asean).

Despite the shortfall, he is optimistic that they can recover from the shortfall.

“There is nothing to be alarmed yet, but I am hopeful to end the year with P260 billion,” Alvarez said. (PNA)



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