BIR collections hit P273 billion in July

MANILA, Philippines — The Bureau of Internal Revenue (BIR) increased its tax collections by nearly 40 percent to P273 billion in July as it ramps up enforcement activities to ensure that the full year goal will be met.

Data showed that BIR collections reached P273.23 billion in July, up 38 percent from P197.39 billion a year ago.

The figure is also five percent above the target collection for the month at P259.91 billion.

For the seven-month period, total collections improved by 12 percent to P1.492 trillion from P1.33 trillion from January to July last year.

This is 56.5 percent of the 2023 collection target of P2.639 trillion.

BIR commissioner Romeo Lumagui said the agency is confident it can attain if not surpass its annual tax target.

“This is with the intensification of our tax enforcement activities, specifically on the campaign against sellers and buyers of fake receipts,” Lumagui said.

“Also included is our newly forged partnership with multi-sectoral groups for the enhancement of taxpayers’ service,” he said.

BIR’s Run After Fake Transactions program aims to investigate and prosecute buyers, sellers, and certified public accountants that are involved in the use of fake receipts.

It is estimated that the government is losing at least P370 billion in revenues from the proliferation of fake transactions through the use of ghost receipts by various business activities in the country.

Some P1.3 trillion in ghost receipts were issued by both small and large businesses. Based on the income tax rate of 25 percent and value added tax of 12 percent, at least P370 billion is the foregone revenues from such transactions.

Ghost corporations have no legitimate business activity and were established primarily for the purpose of selling fictitious sales invoices and ghost receipts to their buyers.

These buyers will then use the fake receipts to claim false and anomalous purchases and illegally lessen their tax obligations.

Earlier this month, the BIR also sought the help of business groups and the private sector in improving the country’s tax administration and eventually attain the collection goal set by the government.

Amid an ever-changing economic landscape, Lumagui emphasized that collaboration between government agencies and the private sector has become crucial in achieving the objectives toward economic growth.