Tax revenues hit P932 billion in Q1

MANILA, Philippines — The government has generated P932 billion in tax revenues in the first quarter as the Department of Finance (DOF) maintained that current collections remain sufficient to fund the country’s budgetary requirements.

Data released by the DOF showed that tax collections from January to March reached P931.5 billion, 13.5 percent higher than last year’s P820.37 billion.

This is equivalent to 21.5 percent of the 2025 tax revenue goal of P4.33 trillion.

Tax revenues are expected to account for 93 percent of overall revenue collections for the year at P4.644 trillion. The remaining amount is expected to come from non-tax revenues and privatization proceeds.

Broken down, the Bureau of Internal Revenue (BIR) raked in P690.4 billion, up by 17 percent from the P591.77 billion in the comparative period.

For the Bureau of Customs (BOC), revenues hit P231.4 billion, a six-percent increase from P218.85 billion in the first quarter of 2024.

Finance Secretary Ralph Recto attributed the performance of both revenue agencies to the continued strengthening of tax administration, digitalization and enforcement efforts.

Given the current tax take, Recto said there is no need for additional revenue measures at this time.

“At this point, current revenues are more than sufficient to support our expenditure requirements. We are meeting our obligations, funding key programs and growing the economy without having to impose new taxes,” Recto said.

“We are also managing our deficit level while maintaining a sustainable debt trajectory aligned with our medium-term fiscal framework,” he said.

Moving forward, the DOF has vowed to ensure the proper implementation of critical measures that would retain and attract more investments and generate additional revenues for the government.

The DOF will likewise continue to explore and strengthen non-tax revenue sources to meet the revenue targets.

Nonetheless, the finance chief maintained strategic measures were prepared to ensure fiscal sustainability and provide necessary buffers amid rising global economic uncertainty due to political tensions, prolonged higher interest rates and unpredictable trade policies.

“But given our current strong fiscal performance, these are not needed at this time,” Recto said.