BIR surpasses collection target, 1st time in 20 years

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has achieved a landmark success by surpassing its P2.85-trillion collection target for 2024, a goal set by the Development Budget Coordination Committee in March last year.

Excluding the adjusted 2020 pandemic target, this marks the first time in 20 years that the agency has reached its collection goals.

BIR Commissioner Romeo Lumagui Jr. said that while the exact figures will be finalized by mid-February, the agency has exceeded its initial target.

“The BIR has collected at least P2.85 trillion for 2024, and all credit goes to the hardworking men and women of the agency,” Lumagui said in a statement.

Latest data from the Bureau of the Treasury (BTr) showed BIR’s revenue collection jumped by 17.8 percent to P247.6 billion in November, amid the double-digit growth in collections from income taxes, value-added tax, excise taxes and documentary stamp tax.

Despite a weaker-than-expected gross domestic product growth of 5.2 percent in the third quarter of 2024, the BIR’s efforts bore fruit amid the success of its reforms and modernization initiatives.

Lumagui attributed the achievement to a shift toward a more taxpayer-focused approach, improving voluntary compliance among taxpayers.

“This goes to show that if government agencies improve their services, processes and programs, our countrymen will do the right thing and pay their proper share of taxes,” he said.

The BIR chief added that all stakeholders, both from the public and private sectors, should hopefully continue to support the reforms the agency has put into place, so that it will continue to surpass its targets in the coming years.

Data from the BTr showed that the government incurred a wider budget deficit of P213 billion in November 2024, more than double the P93.3-billion shortfall recorded in the same month a year ago.

This developed as total revenue collection in November inched down by 0.6 percent to P338.3 billion from P340.4 billion a year ago. But government spending rose by 27.1 percent to P551.3 billion from P433.6 billion previously.

For the 11-month period, the budget deficit went up by 5.9 percent to P1.18 trillion from P1.11 trillion as state spending picked up faster than revenues.

Year-to-date, cumulative revenue collections rose by 15.2 percent to reach P4.1 trillion, while disbursements grew by 13 percent to P5.28 trillion from January to November.