BIR sees 2025 collections reaching P3.1 trillion

MANILA, Philippines — The newly appointed chief of the Bureau of Internal Revenue (BIR) has made a conservative estimate for the agency’s total collections this year at P3.1 trillion, citing ongoing enforcement efforts and improved compliance to boost the overall fiscal performance.

With efficient and fair revenue collection, BIR chief Charlito Martin Mendoza told reporters the agency has only six to seven weeks left to deliver, and his mandate is to maximize collections amid alleged corruption issues that have weakened revenues.

“My instruction to the revenue district officers and regional directors was that it’s urgent, it’s non-negotiable. Maximize collection in the next six to seven weeks,” he said.

Mendoza added that the BIR would maintain its efficient and equitable revenue collection, noting that the agency would push ahead with its digitalization initiatives and its service-driven approach to tax administration.

“Our problem is that there is an impact due to flood-control issues, as well as government payments on contracts and collectible taxes,” he said.

Executive Secretary and former finance secretary Ralph Recto confirmed that the BIR and the Bureau of Customs are likely to miss their revenue targets for the year.

Meanwhile, former BIR commissioner Romeo Lumagui Jr. confirmed and admitted to a slower collection due to the corruption scandal involving the Department of Public Works and Highways.

Latest data from the Bureau of the Treasury showed BIR’s collection from January to September reached P2.32 trillion, slightly lower than the P2.38 trillion targeted for the period.

For the whole year, the BIR is mandated to collect P3.219 trillion in collections. The figure was slightly adjusted from the P3.232-trillion target set by the Cabinet-level Development Budget Coordinating Committee.

Mendoza said he remains optimistic that the collection could reach its target by the end of this year.

“Well, let us hope that we will reach the P3.2 trillion, hopefully we’ll still be able to catch up, but I think about P3.1 trillion, could be higher. But that’s the conservative estimate,” Mendoza said.

When asked if there are sectors that he is looking to ramp up revenue collection, Mendoza affirmed that collections from online businesses and reviewing all types of taxes to identify areas for improvement.