Customs misses 2015 revenue target

For the 5th straight year, the Bureau of Customs fails to achieve its full-year goal

Despite an increase in revenue collection, the Bureau of Customs (BOC) has been consistent in missing its annual target.

BOC data show that the revenue-generating agency failed to attain its P436-billion ($9.24 billion) revenue goal in 2015 after it only collected P366 billion ($7.76 billion) – a shortfall of P70.56 billion ($1.45 billion) for the year.

Last year’s deficit was the 5th time in a row that the BOC missed its target.

The BOC's collection report also showed that 11 of the country's 17 ports missed their targets. The oil ports of Batangas and Limay posted the highest collection shortage during the period.

The Port of Limay fell short of its P45.27 billion ($959 million) target by P23.21 billion ($492 million), while Batangas only collected P82.32 billion ($1.7 billion) of its P96.03-billion ($2.04 billion) target.

The Port of Manila only collected P58.78 billion ($1.25 billion) out of its P73.07-billion ($1.55 billion) target.

The Manila International Container Port (MICP) and the Ninoy Aquino International Airport (NAIA) fell short of their targets by P13.31 billion ($282 million) and P3.58 billion ($75.9 million), respectively.

Also failing to meet their targets were the ports of San Fernando, Tacloban, Aparri, Subic, and Cagayan de Oro.

The Office of the Commissioner collected a tax expenditure fund (TEF) of P8.38 billion ($177 million), P1.62 billion ($34.3 million) short of its P10-billion ($212 million) target.

But the ports of Legazpi, Iloilo, Cebu, Surigao, Davao, and Clark exceeded their revenue goals.

Cebu, with a revenue target of P15.61 billion ($330 million), collected P16.49 billion ($349 million). Income generated by Davao amounted to P11.68 billion ($247 million), which is P980 million ($20 million) over its target of P10.70 billion ($226.9 million).

Iloilo achieved a surplus of P956.9 million ($20 million), Clark with P85.3 million ($1.8 million), Surigao with P6.4 million ($135,693), and Legaspi with P142.3 million ($3 million). – Rappler.com

Reserves increase at end-2015

THE COUNTRY’S reserves rose at the close of 2015 on the back of higher income realized by the Bangko Sentral ng Pilipinas (BSP) from its investments, among others, but still fell short of the regulator’s yearend projection.

The BSP yesterday said in a statement that the Philippines’ gross international reserves (GIR) stood at $80.614 billion at end-December, higher than the downward-revised $80.173 billion recorded as of November’s close.

This is also better than the $79.54 billion in reserves logged at end-2014.

However, the end-2015 GIR figure was a shade lower than the BSP’s downward-revised projection of $80.7 billion in gross reserves at yearend.

The GIR is composed of central bank assets held in different currencies, gold and special drawing rights (SDR), as well as foreign exchange deposits of the government and state-run firms and income from its overseas investments. It indicates a country’s capability to pay for imports and service foreign debts.

The central bank said the improvement in reserves was “due mainly to the national government’s (NG) net foreign currency deposits as well as the BSP’s foreign exchange operations and its income from investments abroad.”

“These inflows were partially offset by payments made by the NG for its maturing foreign exchange obligations,” the BSP added.

The end-2015 GIR level remains “ample,” the central bank said, as it can cover 10.3 months’ worth of imports of goods and payments of services and income.

The reserves are also equivalent to 5.5 times the country’s short-term external debt based on original maturity, and four times based on residual maturity, the BSP said.

The BSP considers reserves adequate if the level can finance three months’ worth of imports or cover 100% of the country’s foreign liabilities.

Central bank data showed that income from foreign investments went up to $71.723 billion at the year’s close from $70.752 billion at end-November. This was also higher than the $69.96 billion recorded at end-2014.

Reserve positions in the fund also ticked up to $438.6 million from $434.9 million at end-November. However, this was less than the $570.6 million seen the year prior.

Gold holdings also crawled higher to $6.702 billion from $6.7 billion the month previous, but stayed below the $7.483 billion recorded at end-2014.

On the other hand, the BSP’s foreign exchange stock declined to $588.1 million from $1.124 billion the month prior, but was higher than end-2014’s $300.2 million.

SDRs were flat at $1.161 billion at end-December from the November level. However, the end-2015 total was lower than the $1.226 billion seen twelve months prior. 

source:  Businessworld