BIR reforms yield record-breaking results

CEBU, Philippines — Bold reforms implemented by the Bureau of Internal Revenue (BIR) under the leadership of Commissioner Romeo D. Lumagui, Jr. have driven the agency’s record-breaking revenue collection in recent years.

The BIR exceeded its 2024 revenue target set by the Development Budget Coordination Committee (DBCC), collecting at least P2.848 trillion.

“While the final collection figures will be confirmed in mid-February, we are confident that we have surpassed the DBCC’s target,” Lumagui said.

This marks the first time in two decades—excluding 2020, when targets were adjusted due to the global pandemic—that the BIR has exceeded its revenue goal, he said.

The accomplishment is particularly noteworthy given the Philippine economy’s slower-than-expected Gross Domestic Product (GDP) growth of 5.2 percent in the third quarter of 2024, down from 6.4 percent in the previous quarter and 6percent in the same period last year.

“The BIR has collected at least P2.848 trillion for 2024, and all credit goes to the hardworking men and women of the agency,” Lumagui noted.

The Commissioner attributed the agency’s success to the implementation of good governance reforms and a strategic shift toward a taxpayer-oriented approach that has significantly improved voluntary tax compliance.

“When government agencies enhance their processes and services, citizens are more willing to do their part and pay their fair share of taxes,” he added.

Since his appointment by President Ferdinand R. Marcos Jr. in 2022, Lumagui has been lauded for his hands-on leadership, which has played a crucial role in strengthening the BIR’s commitment to transparency and efficiency.

Under his tenure, the agency has achieved several key milestones, including 100 percent nationwide ISO certification for various frontline processes; Accreditation of Maturity Level II under the Civil Service Commission’s PRIME-HRM program; and the National Privacy Commission (NPC) Seal of Registration.

Lumagui’s leadership is anchored on four strategic pillars: strong enforcement activities, excellent taxpayer service, institutional integrity and professionalism, and a robust push for digitalization.

A major achievement under his term has been the BIR’s crackdown on tax evasion through the elimination of “ghost receipts,” a long-standing issue involving fictitious receipts and invoices used to evade taxes. The establishment of the Run After Fake Transactions (RAFT) task force—an unprecedented initiative in BIR history—has been a key step in addressing this challenge.

The BIR also introduced a new withholding tax system for online businesses, ensuring a level playing field between traditional and digital retail sectors.

“We are grateful for the support and guidance of President Marcos Jr., and this has inspired us to deliver outstanding performance. We now have a successful and proven template that works,” Lumagui said.

He expressed hope that all stakeholders—both public and private—will continue to support the agency’s reforms to sustain its upward trajectory in revenue collection.

“I hope and pray that all stakeholders will continue to support the reforms we have implemented, allowing us to consistently surpass our targets in the coming years,” the commissioner concluded.