MANILA, Oct 14 - The Philippines second biggest tax agency, the Bureau of Customs, may lose 13 billion pesos of revenue if the peso strengthens to 42 per dollar by year end, Commissioner Angelito Alvarez said on Thursday.
Duties and taxes are levied as a percentage of the value of imports, and the currency's strength it rose to a year high of 43.18 on Thursday -- leads to a lower conversion of the dollar value of imports and therefore less revenues.
Customs has a revenue target of 280 billion pesos this year, which includes a cash collection target of 241 billion pesos. Despite missing its collection goals in August and September , Alvarez told reporters the cash collection target could still be met.
"There's still a chance because normally October and November are good months for us," he said.
The government, which took office at the end of June, raised the budget deficit forecast to 325 billion pesos or 3.9 percent of GDP, a record in peso terms.
