GMA orders Customs to submit detailed analysis of collections

A DISMAYED President Arroyo yesterday ordered the Bureau of Customs (BOC) to give a "detailed analysis" of its collection efforts during the first two months of the year after it reported a P900-million revenue shortfall for the period.

The BOC and the Bureau of Internal Revenue (BIR) reported on their revenue collection efforts during Tuesday's Cabinet meeting.

Press Secretary Ignacio Bunye said BIR was "on target" but BOC's collection was "slightly below target for the first two months." Deputy presidential spokeswoman Lorelei Fajardo said the two revenue collecting agencies posted "respectable increases" in the first two months of this year relative to the same period in 2007.

In order to meet government's target of a balanced budget this year, the BOC is expected to collect P254 billion while the BIR should collect P845 billion for the whole year. The BOC reported a P5-billion shortfall in January. As of February, BOC reportedly collected P15.61 billion, which is off the target of P16.52 billion.

Bunye said Arroyo ordered the BOC to give a detailed report of its collections, "office by office, port by port" to determine the cause of the shortfall. He said the President frowned at the BOC's explanation that its collections were adversely affected by the foreign exchange rate. He said Arroyo pointed out that the stronger peso should have been balanced by the high price of oil in the world market, which rose from $90 to $105 per barrel.

Fajardo said it is best to wait for the first quarter collection figures which would be released next month before assessing the revenue performance of both agencies. "The first quarter isn't over yet," she said.

She said the President ordered both the BIR and BOC to undertake "new and innovative measures to further enhance revenue collection efficiency, which is the key to attaining fiscal balance."