Go confident on BOC hitting P1-Trillion revenue goal in 2026

Finance Secretary Frederick Go —CONTRIBUTED

Finance Secretary Frederick Go expressed confidence that the Bureau of Customs (BOC) will finally reach its P1.003-trillion target this year. It is a long-elusive goal that the agency says it is ready to tackle.

The interagency Development Budget Coordination Committee (DBCC) trimmed the BOC’s revenue target for 2026 from P1.013 trillion. This followed downward revisions in the government’s economic growth goals.

In 2025, the agency fell short of its P958.7-billion full-year goal by 2.5 percent.

But Go said the country’s second-largest revenue source is capable of finally hitting its target on the back of reforms and renewed leadership.

“I hope that we have put in all the reforms needed that have long been espoused. I have confidence in the new leadership of the Bureau of Customs. When I say leadership, I mean everybody, not just one person. We’re talking about the entire Bureau of Customs,” Go told reporters during the BOC’s 124th founding Anniversary celebration.

“We have to hit the target if we want to maintain our fiscal deficit ratio,” he said. He noted that BOC’s revenue intake would support the government’s prudent fiscal management.

Higher internal targets

In response, BOC Commissioner Ariel Nepomuceno said the agency has set internal targets higher than those of the DBCC. The intention is to generate surplus revenue that could offset potential shortfalls in other months.

“We can hit the P1-trillion mark if the economic assumptions are reasonable and achievable. It’s challenging, but doable. We’re taking the challenge and that’s a good mission,” Nepomuceno said.

“That’s the least we can do to help the economy,” he added.

According to Nepomuceno, the monthly revenue target is P82 million to P84 billion or roughly P4 to 4.2 billion per day.

In January, the BOC collected P80.744 billion in revenues, surpassing the target by P513 million and achieving a 100.6 percent collection efficiency.

Nepomuceno also noted ongoing improvements in border management and stricter compliance with customs rules.

“We have already started stricter oversight on proper processes of assessment, payment and enforcement. It’s not yet perfect, but we are seeing improvements. Gradually, we are moving toward full digitalization, give or take one year,” he said.

Asked about key revenue drivers, Nepomuceno highlighted agriculture and petroleum products. This, especially after the rice import ban was lifted and tariffs are now applied under a flexible scheme.

Notably, the ban contributed to missed revenue targets, with foregone collections reaching P3 billion to P4 billion per month last year.

Meanwhile, Nepomuceno noted that the peso depreciation against the dollar only provides a short-term boost to revenue collection efforts.

“We can’t identify the long-term effect because there might be dampening of trading activities, leading to lower volumes. There’s a sweet spot there,” he said.

“As long as the volume will be maintained, we’re not supposed to fully rely on currency fluctuations,” he added.

Digital tax

In a separate development, the Bureau of Internal Revenue (BIR) said value-added tax (VAT) on digital services is expected to be one of the key drivers in meeting its lowered P3.431-trillion revenue target this year.

BIR Commissioner Charlie Mendoza said the agency expects to generate around P21 billion from VAT on digital services in 2026.

“That [VAT on digital services] is one of the drivers,” Mendoza told reporters during the agency’s National Tax Campaign Kickoff on Friday.

The BIR collected P8 billion in VAT on digital services from August to December last year. That followed the rollout of the tax on digital platforms.

Mendoza said the agency is also ramping up digitalization efforts to improve overall VAT collection.

“We make filing easier. We make payment easier. We streamline our processes. We revisit our existing issuances—revenue regulations and revenue memorandum circulars—to see how we can simplify compliance,” he said.

Asked about his outlook on this year’s target, Mendoza said it is also a challenge.

“We will do our best to meet that. Of course, our digitalization is there. So we’re working on real-time monitoring to prevent leakages,” he said.

“And then, of course, this year, the government will accelerate its infrastructure projects—which has a huge multiplier effect. These are the things that will boost our revenue collection this year,” he added.