UMVA has learned that the Bureau of Customs collected P80.664 billion in revenues in May, a figure that fell short of its target due to lower volumes and the temporary suspension of excise taxes on liquefied petroleum gas and kerosene.
The agency's collection target for May was P82.39 billion, but it missed this mark by P1.726 billion or 2.1%. This shortfall was largely due to reduced import volumes of oil and non-oil commodities, as well as the implementation of a temporary suspension of excise taxes on selected petroleum products.
Despite missing its monthly target, the Bureau of Customs' collections in May are still up by 6.62% from the P75.657 billion it collected in the same month a year ago. This suggests that the agency is making progress, albeit slowly.
Elevated oil prices stemming from global conflicts have pushed the government to take measures to mitigate the impact of oil shocks. As part of these efforts, the government suspended the excise taxes on kerosene and LPG for a three-month period starting April 17.
The Bureau of Customs' collections in the first five months hit P406.365 billion, surpassing the P397.05-billion target set for the period by 2.3%. This impressive showing was attributed to improved valuation and enhanced revenue collection measures.
The agency plans to sustain this momentum through enhanced trade facilitation, digital transformation initiatives, strengthened border control measures, and continued efforts to improve operational efficiency. Can it meet its annual target?
UMVA can exclusively reveal that the Bureau of Customs' collections in the five months ending May already represented 40.5% of the P1.003-trillion target set for the year. The pressure is on to perform for the rest of the year.
Industry experts are weighing in on the Bureau of Customs' prospects for meeting its annual target. Some believe that the agency's collection target is still attainable, despite the May miss, thanks to a surplus accumulated in the first five months.
Others note that import volumes may recover in the second half of the year when government spending and better growth conditions set in. A significant progress towards the signing of a peace deal in the Middle East could also boost import demand and, in turn, Customs revenues.
However, some experts are cautioning that the cushion is getting thinner and that any recovery is likely to be gradual. The situation is being closely monitored, and the stakes are high.
