DOF stands pat on BIR, BOC collection targets
The Department of Finance (DOF) sees no need yet to revisit the government’s tax revenue targets for the year despite the mixed performance of its two main collection agencies, with the Bureau of Internal Revenue (BIR) still trailing its goal while the Bureau of Customs (BOC) remains on track.
This is according to Finance Undersecretary Rolando Ligon, who said there have been no discussions yet on adjusting the targets.
“The BOC is above its target. The BIR is still struggling. Hopefully, they will be able to deliver by the end of the year,” Ligon told reporters on the sidelines of the 5th SGV Tax Symposium.
As of end-September, the BIR’s cumulative collections rose 6 percent to P2.465 trillion but fell P43 billion, or 2 percent, short of its P2.508-trillion target for the period.
The shortfall came after the agency also missed its first-semester target by P22.6 billion, as collections from several revenue streams either declined or slowed to single-digit growth.
For the full year, the BIR has been tasked to collect P3.393 trillion.
Headwinds
BIR Commissioner Charlie Mendoza, however, said he remains cautiously optimistic that the agency will meet its full-year goal.
“Government infrastructure projects are starting to pick up. When it comes to that, the multiplier effect is huge. It really significantly impacts our collection. The value-added tax on digital services looks good. Our collections are good. We almost met the full-year projection on that,” Mendoza said.
“We remain cautiously optimistic that we will still be able to meet our goal for this year. But then again, we have grown [our revenues]. I think that is significant despite the economic headwinds that we are facing,” he added.
Mendoza attributed the BIR’s collection challenges to the slower pace of government spending, particularly on public infrastructure, as well as lower tax collections from certain sectors such as banking and gaming.
Meanwhile, the BOC collected P757.5 billion from January to September, exceeding its P748.5-billion target for the period by nearly P9 billion.
The agency has been tasked to collect P1.011 trillion for 2026, marking its first trillion-peso annual collection target.
BOC Commissioner Ariel Nepomuceno said the agency remains on track to meet the goal.
“Of course, there’s a downside due to the kerosene and LPG excise tax suspension. So we’re strict on the rate assessment of other items, such as steel products, grains, and wheat. We’re on track,” Nepomuceno said.
As of Oct. 19, the BOC had collected P52.5 billion, already more than half of its P98.2-billion target for the month.
