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The Bureau of Customs fell short of its August target by 2.52%
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The agency collected P78.908 billion compared to its P80.945-billion goal for August
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BOC said Executive Order 62, which reduced rice tariff to 15%, resulted in a P2.353-billion revenue loss
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Zero tariff on motor vehicles also caused a P1.034-billion deficit
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For January to August, revenue collection surpassed target by 0.9%
The Bureau of Customs fell short of its August target by 2.52%, taking in P78.908 billion compared to its P80.945-billion goal.
The agency attributed the revenue loss to recent policy changes.
BOC in a statement said Executive Order (EO) No. 62, which reduced the rice tariff from 35% to 15%, accounted for a P2.353-billion revenue loss. Additionally, the reduction of motor vehicle tariff to 0% resulted in a P1.034-billion deficit.
EO 62, signed on June 20, 2024, modified various products’ most favored nation (MFN) rates of duty — or the promised taxes imposed on members of the World Trade Organization — from 2024 to 2028 to “augment supply, manage prices, and temper inflationary measures…”
The National Economic and Development Authority Board last May extended until 2028 zero duties of electric vehicles (EVs) under EO 12, which temporarily cut the MFN tariff rates on completely built up units of certain electric vehicles, except for hybrid-type EVs.
BOC said these policy adjustments were essential for broader economic and consumer benefits, reflecting a strategic shift towards more affordable essential goods.
“Despite these temporary setbacks, the BOC remains resolute in its mission to achieve its 2024 revenue goals,” the agency said.
BOC said it is actively addressing the challenges and working diligently to bridge the revenue gap, thereby supporting the country’s fiscal health and stability.
For January to August though, revenue collection surpassed target by 0.9%.
Based on preliminary reports, BOC collected P614.781 billion for the first eight months of the year, higher than the P609.592-billion target. The latest figure was also 5.7% up from the P581.491-billion collected during the same period in 2023.
BOC said the growth underscores its “effective strategies in valuing goods and ensuring precise import duty assessments.”
It added that “through stringent customs compliance, the BOC has effectively minimized under-declaration and misclassification, enhancing efficiency, transparency, and overall fiscal management.”
