GOCC dividends boost non-tax take

Higher dividend remittances from state-owned corporations may help offset a potential shortfall in the government's P5-billion privatization target for 2025, according to the Department of Finance (DOF).

- By DERCO ROSAL

Speaking to reporters last week, DOF Secretary Ralph G. Recto said that the government is performing better in other areas of raking in non-tax revenues, noting in particular the recent sale of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plants, which cost P36.3 billion. Collection for this asset sale is projected to come in by the end of the year.

Based on the latest Bureau of the Treasury (BTr) data, privatization proceeds reached P1.25 billion as of end-May, more than triple of the only P399 million generated during the first five months of last year.

When asked if the downscaled privatization target could still be met without the proceeds from the CBK power complex, Recto signaled it may fall short.

"Not necessarily through privatization. We're doing better in other areas. There are still privatization efforts, but we're seeing better performance, for example, in dividend collections," Recto told reporters.