September 8, 2024 | 12:00am
Amid rice tariff cut
MANILA, Philippines — The Bureau of Customs (BOC) saw its collections fall short of target in August following the implementation of the rice tariff cut.
Preliminary data showed that Customs collections reached P78.91 billion in August, up by 5.2 percent from P75 billion in the same period last year.
However, this was 2.5 percent below the P80.95 billion target for the month following recent policy changes.
In particular, Executive Order 62 slashed rice tariff to 15 percent from 35 percent in a bid to tame inflation. This accounted for P2.353 billion in revenue loss for Customs.
Similarly, the reduction of the motor vehicle tariff to zero resulted in a P1.034-billion deficit.
Nonetheless, Customs Commissioner Bienvenido Rubio said the policy adjustments were essential for broader economic and consumer benefits, reflecting a strategic shift toward more affordable essential goods.
“Despite these temporary setbacks, we remain resolute in our mission to achieve our 2024 revenue goals,” Rubio said.
”We are actively addressing these challenges and working diligently to bridge the revenue gap, thereby supporting the country’s fiscal health and stability,” he said.
The August performance brought the BOC’s eight-month revenue collection to P614.78 billion, 5.7 percent higher than the P581.49 billion it generated in the same period in 2023.
The figure is also slightly higher by a percentage than target of P609.59 billion for the first eight months.
The revenue for the eight-month period is now 65.4 percent of the revised P939.7 billion target for the year set by the Cabinet-level Development Budget Coordination Committee.
The BOC attributed its performance to effective Customs strategies in valuing goods and ensuring precise import duty assessments.
”Through stringent Customs compliance, the BOC has minimized underdeclaration and misclassification, enhancing efficiency, transparency and overall fiscal management,” Rubio said.
As the second largest revenue agency, the BOC is mandated to deliver financial resources to fund the government’s programs and projects.
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