BIR collections hit P530B, exceed target in early 2026
The Bureau of Internal Revenue (BIR) posted robust revenue collections in the first two months of the year, with the tax take surpassing its internal target by P2.3 billion.
Latest data from the agency showed collections rose nearly 3 percent year on year to P530.06 billion from January to February, equivalent to 100.43 percent of the BIR’s target.
“[It reflects] steady improvements from intensified tax administration, stronger enforcement efforts and ongoing measures to boost taxpayer compliance nationwide,” the BIR said in a statement on Friday.
The early revenue gains mark a rebound from last year’s softer performance, when the BIR fell short of its P3.2-trillion collection target for 2025.
“Despite global economic headwinds, the BIR remains optimistic and firmly committed to sustaining revenue growth and meeting its 2026 goals,” BIR said.
“The Bureau continues to pursue its mandate through a balanced and people-centered approach—raising the revenues needed to support national development while protecting taxpayers’ rights and strengthening stakeholder trust and confidence,” it added.
For 2026, the agency aims to collect P3.579 trillion. BIR Commissioner Charlie Mendoza earlier told reporters during the National Tax Campaign kickoff that a projected P21-billion value-added tax (VAT) on digital services this year will be among the drivers in achieving this target.
But revenue collections this year may be under pressure amid the Middle East war’s energy shock, which sent lawmakers reviewing the possible suspension of excise taxes on fuel. The Department of Finance warned this could result in a P136-billion revenue shortfall.
The BIR also recently issued a memorandum granting VAT exemptions for indigenous natural gas and related power generation, in a bid to help ease energy costs.
Other tax pressures beyond the war are also emerging.
In February, the Organisation for Economic Co-operation and Development said the Philippines could keep debt levels manageable by broadening its tax base, including reforms to the VAT system—implying fewer exemptions.
