MANILA: The persistent drop in oil continued to take its toll on the revenue collections of the Bureau of Customs, which missed its target in the first month of the year.
The agency, which traditionally accounts for a fifth of state revenues, reported on Wednesday that it raised P30.9 billion in January, 21.1 percent below its P39.2-billion goal for the month.
Nonetheless, Customs said its total haul improved 5.2 percent from P29.4 billion in the same period a year ago.
“The collection effort of the BOC is adversely affected by the 41.2-percent drop in the weighted average price of crude and petro products,” Customs said in a statement on Wednesday.
Global oil prices continued their tumble after dropping by double digits last year. This, in turn, resulted into lower import rates for the Philippines, which sources bulk of its oil requirements abroad.
Lower prices result into lower valuations where Customs duties are based.
On Tuesday, Saudi Arabia and Russia, two of the world’s biggest oil producers, announced a freeze in increasing oil supply to arrest decreasing prices.
According to Customs data, oil revenue collections fell to P3.9 billion in January from P4.6 billion in the previous year.
On the flip side, non-oil revenues rose to P26.9 billion from P24.7 billion.
“It is also important to note that non-dutiable value of imports due to free trade agreements, import promoting agencies and other special laws compose 70 percent of the total value of imports,” Cecile Soriano, financial services director, was quoted as saying in the statement.
Customs said total volume and value of imports increased 19.5 percent and 13.5 percent, respectively. Theoretically, lower values or prices are offset by larger volumes.
“The bureau will continue to step up its efforts to meet its monthly revenue targets despite the continuing drop in oil prices,” Customs Commissioner Alberto Lina said.
On a meeting last Monday, economic managers kept Customs’ P498.7-billion target for this year, up 14 percent from last year’s goal.
The bureau collected P366.9 billion last year, down 0.6 percent from 2014.
