BoC Hikes This Year’s Revenue Collection Target

The Bureau of Customs (BoC) raised its revenue collection target for 2023 to P901.3 billion, as the Philippine peso is expected to further depreciate against the US dollar.

Photo Insert: The Customs bureau is expected to generate P901.3 billion in revenue next year."

“Based on the emerging target approved by the Development Budget Coordination Committee (DBCC), the Customs bureau is expected to generate P901.3 billion in revenue next year,” according to the BoC Financial Service.

“The emerging collection target is (18%) higher by P135.8 billion compared to the 2023 Budget of Expenditure and Sources of Financing (BESF) program level of P765.6 billion due to higher exchange rate assumptions despite lower projected Dubai crude oil price and slower import growth compared with 2022,” the BoC Financial Service added.

The DBCC earlier this month upwardly revised the peso-dollar exchange rate assumption to P55-59 in 2023, from P51-55 previously. Economic managers noted the peso “continues to depreciate due to heightened global uncertainties and aggressive monetary policy tightening of the US Federal Reserve.”

According to the DBCC’s latest assumptions, Dubai crude oil price is expected to slip to $80-100 per barrel in 2023, from $98-100 this year. The DBCC also lowered the imports growth target to 4% in 2023, from 6% previously. This is much slower than this year’s 20% growth goal.

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