NSCB: Most ‘tax evaders’ are outside NCR

Most businesses and individuals who avoid paying taxes are based not in Metro Manila but outside the National Capital Region (NCR), according to the National Statistical Coordination Board (NSCB).

The NCR economy has historically produced 36 to 37 percent of the country’s gross domestic product, while all the other regions accounted for 63 to 64 percent of the national output.

However, NSCB data showed that Metro Manila residents paid 95.9 percent of the P1.09 trillion national taxes in 2010 while those living in the rest of the country accounted for only 4.1 percent.

“National income tax paid per capita and individual income tax paid per capita are very low outside NCR,” NSCB data crunchers said.

Analysis by the National Statistical Coordination Board (NSCB) shows NCR residents paying nearly all the taxes while the rest of the country carries only a fraction of the tax burden. Year 2009 data are presented in this graphic.

NSCB also noted that the average ratio of national tax paid to gross regional domestic product (GRDP) from 2006 to 2009 is highest in NCR and lowest in the Central Visayas and in Regions X and XII in Mindanao.

“More noticeable however are the regions with larger GRDPs like Region IV and Region III with lower amount of national tax paid,” the agency said.

In 2010 for example, Central Luzon residents paid only P1.6 billion in individual income taxes while NCR residents paid P136 billion.

“Could this be an indication that taxes are not being efficiently collected or properly paid in Region X, Region XII, Region VII, Region IV and Region III?” the NSCB noted.

Data also showed that per capita income tax paid is relatively larger in Bicol, Eastern Visayas and Caraga, compared to Regions X, XII, VII, IV, and III.

The NSCB sourced its national tax and income tax data from the financial reports of the Commission on Audit.

In his State of the Nation Address on July 25, 2011 President Benigno Aquino III noted the low per capita figure of income taxes paid by the self-employed, professionals, and entrepreneurs.

“Ayon sa BIR, mayroon tayong halos 1.7 million na self-employed at professional tax payers gaya ng mga abogado, doktor, at negosyante na nagbayad lamang, sa suma total, ng 9.8 billion pesos noong 2010. 5,783 pesos lang ang ibinayad na income tax ng bawat isa raw sa kanila, on average—ang ibig sabihin, kung totoo po ito, ang kabuuang kita nila ay umaabot lang ng 8,500 pesos kada buwan. Mababa pa sa minimum wage. Naman.” —Earl Victor Rosero/VS, GMA News