BIR beats target, rakes in P850 billion

MANILA, Philippines — The Bureau of Internal Revenue (BIR) collected nearly P850 billion in four months on the back of improved tax monitoring and sustained economic reopening.

Initial data obtained by The STAR showed that collections from January to April reached P846.7 billion, up 14 percent from the P742.37 billion generated in the same period last year.

The four-month collection is also slightly above the P836.8 billion target set for the period.

The latest BIR collection is about 32.5 percent of the P2.6-trillion revenue target of the agency for the whole year.

In a message, BIR Assistant Commissioner Jethro Sabariaga said there is no solution to all the problems affecting the country’s tax system, but a “properly motivated and coordinated effort from officials and taxpayers” is important.

“We increased efficiency in our tax compliance monitoring efforts, resolution of audit cases, tax campaigns, and went after major injustices in the tax system, such as the Run After Fake Transactions (program),” Sabariaga said.

“The better economic conditions after the pandemic also helped despite last year being a historically better consumption year due to the (national) elections,” he said.

BIR Commissioner Romeo Lumagui, for his part, emphasized that the administration will need to address four areas of concern to ensure that better revenue collection is sustained.

These include intensification of enforcement activities, taxpayers’ service, integrity and professionalism, and digitalization.

“Fixing these areas will bring BIR to greater heights. I am confident that as long as we address these areas, the BIR will reach its collection goal for 2023,” Lumagui said.

Finance Secretary Benjamin Diokno earlier said the economy’s performance will drive collections this year.

As of now, tax efforts as a percentage of gross domestic product is at 14.6 percent, and this is seen increasing to 17.1 percent by the end of the Marcos administration.

Diokno stressed the need to widen the tax base, simplify the process of tax collections, and provide a revenue system that is simple, fair and efficient.