Maiur however agreed with tax officials projection that 2010 tax collection will not hit the $30 million mark but this has been the average collection in the past years.
He said though that overall 2010 revenue collections will be short of about $3 million due to a sluggish economy.
Mariur said that consumers are not spending more causing the import tax to decrease. As of June 30, 2010 general import tax collection reached $4, 640,704 and the projected revenue from import tax this year is $7, 184,000.
Earlier tax officials are not so optimistic about the 2010 collections during the oversight hearing conducted by the House of Delegates Committee on Ways and Means last week.
Del. Secilil Elbedechel said that business sector are optimistic about the economy and that tourism is improving.
However Mariur said that “a small increase in the number of tourists is not translating into a big amount.”
Because the government is expecting a $3 million shortfall, accumulated deficit will reach to at least $14 million.
The delegates during the oversight hearing also raised the issue of whether enforcement affected the shortfall in collection.
“It could be a combination of many factors or ability to go out and collect taxes,” Elbedechel said.
Mariur said tax officers are doing their job well but because of the lack of resources, the bureau is unable to improve its collection.
“Our budget has been cut, it is also hard for us to do our work,” he said.
Earlier, Elbedechel said that tax collection has been decreasing and that during the hearing the tax officials justified it because of the slow economy.
He noted that tax collection is not on the uptrend it’s declining. Mariur however said that the average collection has been less that $30 million in the past years.
“It has been like that every year,” Mariur said.
As of June 30, tax collection is at $21,576,745 and the projected revenue is at $31,029,000.
Elbedechel said that there is a need for tax officials to be creative in running after tax delinquents because taxes are the main source of the country’s funding.
He said that as a source of fund, Congress should consider new taxes.
