The BUREAU of Internal Revenue (BIR) Revenue Region (RR) No.16 has announced that it has gained significant headway in reducing the collections shortfall for the second quarter of 2009, bringing it closer to achieving its yearend goal of collecting P4.99 billion.

Last March 10, 2009, RR No. 16 was faced with the challenging task of arresting a deficit of 229.7M or 22.16 percent short against goal and 186.8M or 18.80 percent underperformance against last year’s collections for the same period.

Despite tax relief measures under Republic Act No. 9504 which provided exemption to minimum wage earners from income tax as well as an increase in personal exemptions, beginning April, the cumulative deficit was decreased to 14.95 percent compared to goal and 11.27 percent short against collections of same period 2008.

By May, the region exceeded the collection target for the month by 1.64 percent and registered a collection growth of 2.92 percent against last year’s collection of the same period. The cumulative deficit was down to 11.55 percent against goal and 8.29 percent against collections of same period last year.

For the month of June, the Region again, exceeded its collection goal for the month by .15 percent and surpassing last year’s collection for the same period by 1.3 percent, reducing further the cumulative deficit by 9.83 percent against goal and 6.86 percent short against 2008 collections. 

For the month of July the cumulative deficiency was further decreased to 5.09 percent.

The recovery from shortfall is made possible through the implementation of various tax collection measures.

After the crisis experienced by the Region in later part of 2008 that dragged through the 1st quarter of 2009 and the controversial protest by Cagayan de Oro businessmen against the regional BIR leadership last year, the region has began to move forward after the appointment of key people in the regional office. Director Esmeralda M. Tabule and ARD Mamapok G. Diro, assumed leadership of Revenue Region No. 16 and Revenue District Officer (RDO) Noel Gonzales of RDO 98, Cagayan de Oro City,  in March of this year. The Tubule-led team was previously from RR 18 based in Cotabato City.