Tax collection target likely to be revised

On slow GDP growth

MANILA, Philippines — The government may have to revise its revenue collection target for this year following a slowdown in economic growth, according to Bureau of Internal Revenue Commissioner Romeo Lumagui Jr.

During the Kapihan sa Manila Bay forum yesterday, Lumagui did not dismiss the possibility of a revision to the agency’s P3.232-trillion collection target for 2025.

“It’s possible given the actual GDP (gross domestic product) growth,” Lumagui said.

“It is being discussed, what is the correct collection target for the BIR, but as of now it is still at the P3.2-trillion level. No changes yet,” he said.

Any changes in the macroeconomic targets of the government will be decided by the Cabinet-level Development Budget Coordination Committee.

The DBCC is expected to hold its meeting on Monday, June 23.

The P3.2-trillion collection target of the BIR accounts for 70 percent of the P4.64-trillion overall revenue goal of the government. Others would come from the Bureau of Customs, non-tax revenues and privatization proceeds.

“Supposedly, our collection target is dependent on the economic growth of the country. Since GDP is not growing as projected, there should be a recalibration on the collection target, if we will follow (that),” Lumagui said.

During the first quarter, the economy grew by 5.4 percent, way below the 2025 DBCC target range of six to eight percent.

Lumagui said the BIR has been working double time to ensure that its revenue collection target would be met this year.

Latest data showed that BIR collections reached P1.11 trillion as of end-April, up by 14.5 percent from the P970.3 billion in the same period last year.

This represents 34 percent of its P3.2 trillion target for 2025.

Meanwhile, the BIR is proposing a 6.5-percent increase to P18 billion in its 2026 budget from the current P16.9 billion to improve its facilities and digital transformation efforts.

One of its proposals is to build a P150-million contact center where taxpayers can do their transactions and queries via phones.

“Especially in the provinces, people would travel several hours just to ask simple questions to the BIR when it can simply be done through phones. It’s a centralized contact center,” Lumagui said.

Similarly, the BIR targets to establish more e-lounges and procure more computers in its district offices to cater to more taxpayers.