DBCC unlikely to tweak revenue targets for now

MANILA, Philippines — The Development Budget Coordination Committee (DBCC) is unlikely to revise the government’s revenue collection targets for 2026, ahead of its remaining meeting this year.

“We haven’t talked about targets yet. I don’t think there will be any changes,” Finance Undersecretary Rolando Ligon Jr. told reporters on the sidelines of the 5th SGV Tax Symposium.

The DBCC, an inter-agency body that coordinates the government’s fiscal program and macroeconomic assumptions, earlier reviewed economic targets amid developments in the flood control scandal and Middle East conflict that prompted the government to declare a national energy emergency.

The DBCC usually convenes every June and December.

During its 193rd meeting, the DBCC approved the government’s revenue collection target at P4.81 trillion for this year, including P4.44 trillion in tax revenues.

The Bureau of Internal Revenue (BIR) was tasked to collect P3.39 trillion, while the Bureau of Customs (BOC) was assigned a P1.01-trillion target.

“The BOC is above the target. The BIR is still struggling. Hopefully, they will be able to deliver by the end of the year,” Ligon said.

The government also aims to raise P5.21 trillion in revenues next year, P5.52 trillion in 2028 and P5.99 trillion in 2029, according to the DBCC.

BIR Commissioner Charlito Martin Mendoza is hoping that collections will improve as the government resumes infrastructure spending.

“We remain cautiously optimistic. Hopefully, we will still be able to meet the target. But you know the reasons,” Mendoza said at the same event.

“We are facing economic headwinds, including slower public infrastructure spending, which has a significant impact on revenue collections. Revenues from certain sectors, such as banking and gaming, have also been low,” the BIR chief said.

From January to September, the BIR collected P2.47 trillion in gross revenues, up by 5.6 percent from P2.33 trillion collected in the same period last year.

However, the amount collected by the BIR during the nine-month period was two percent off the DBCC target of P2.508 trillion.

Customs Commissioner Ariel Nepomuceno said the BOC remains on track to meet its P1-trillion revenue target for the year.

However, the suspension of fuel excise taxes and port congestion posed challenges.

“We’re looking to be strict on other items. There are still efficiencies, possible rate of assessment improvements,” Nepomuceno said, citing products such as steel and grains.

The BOC has collected P52.5 billion as of Oct. 19, equivalent to about 53 percent of its P98.2-billion revenue target for the month.