BIR targets P1.1 trillion collection

MANILA, Philippines — The Bureau of Internal Revenue (BIR) is expecting to collect some P1.1 trillion in taxes during this year’s tax season to fund the government’s priority programs.

In a briefing yesterday, BIR commissioner Romeo Lumagui reminded the public to file and pay their annual income tax return, which summarizes a taxpayer’s transactions last year, until  April 17.

Lumagui said only about 10 percent of the 4.6 million taxpayers registered to file ITRs have yet to pay their dues.

“So far, the turnout of the filing is okay. I guess it is more of the taxpayers waiting for the deadline because of the behavior of waiting until the last minute,” Lumagui said.

Data showed that there are 3.8 million individual taxpayers and 800,000 corporate taxpayers required to file ITRs.

Generally, an individual needs to file an income tax if he or she is earning.

However, there are exemptions including those with salaries of not exceeding P250,000, employees covered by substituted filing, those whose income were subjected to final withholding tax, as well as the minimum wage earners.

Lumagui said the P1.1-trillion target this year was 12-percent higher than the 2022 level of roughly P970 billion.

The expected collection this tax season is about 42 percent of the total P2.6 trillion in total revenues that the BIR is tasked to generate for 2023.

“We are confident that we will be able to attain our collection target for this year, especially with all the activities that we have lined up,” Lumagui said.

The BIR chief also maintained that the revenue agency is not leaning toward an extension beyond the April 17 deadline.

“We would prefer to avoid this (extending) because every delay in the collection of taxes represents a delay in delivery of public service,” Lumagui said.

“Our taxes are urgently needed by the government, especially that these funds are crucial to sustain the recovery of our national economy after the pressures of COVID,” he said.

Lumagui argued that taxes are the lifeblood of the government that is being used for infrastructure, health and social services, among others.

Taxpayers who will not be able to file and pay their ITRs until April 17 will be subjected to penalties including a 12-percent interest and 25-percent surcharge.

Lumagui said that the BIR has made the payment process simpler and more convenient for taxpayers.