Metro Manila (CNN Philippines, July 2) — The Department of Finance has reported that government tax collections and other revenues in the first half of 2020 declined 16 percent as COVID-19 pandemic continues to restrict business operations.
The department said collections from taxes on businesses and individuals as well as customs duties totaled ₱1.155 trillion in the first six months of the year, compared to ₱1.375 trillion in the same period last year. This is also lower by 2.7 percent from the ₱1.187 trillion target for the period.
Taxes collected by the Bureau of Internal Revenue reached ₱170.5 billion, 15.9 percent lower than the collections during the first half of 2019, and 3.38 percent lower than its first-half 2020 target.
On the other hand, the Bureau of Customs collected ₱253.04 billion during the period, 16.49 percent lower than its collections in the same period last year, and 0.47 percent lower than its target for first half 2020.
However, the Finance department said it expects collections to pick up in the coming months, with improvements observed in June. Combined, the two bureaus collected ₱270.77 billion in the month alone, 28 percent higher than June 2019.
The government imposed community quarantine across the country, with the strict enhanced community quarantine imposed in Metro Manila, to control the spread of COVID-19 mid-May.
As the economy is slowly restarting with the shift to a more relaxed general community quarantine in place in many areas, more businesses are being allowed to operate.
