High oil prices boost BIR take

The Bureau of Internal Revenue (BIR) generated more than P198 billion in gross revenues in March, amid the Middle East war that has pushed oil prices higher—and, in turn, boosted tax collections.

According to the country’s top revenue collection agency, preliminary figures showed an 11.87-percent jump in revenues to P198.75 billion last month from the same period a year earlier.

However, net collections reached only P187.4 billion after P11.4 billion in tax refunds, which tempered overall revenues.

The BIR noted that refunds were five times higher than last year’s figure, as more funds were returned to taxpayers and businesses during the ongoing energy crisis that has weighed on purchasing power and driven up commodity prices.

Net collections were still 6.68 percent higher than a year ago.

“Our March 2026 collection performance is encouraging, especially at this time of economic strain. We at the BIR heed the directive of President Ferdinand Marcos Jr. and Finance Secretary Frederick Go to help ensure that the government has steady revenues to fund essential services and provide timely support, especially to those who need it most,” Commissioner Charlie Mendoza said in a statement.

The Middle East war, which erupted in late February, has triggered an energy shock that sent global oil prices surging past $100 per barrel—resulting in double-digit increases in domestic pump prices.

This, in turn, led to higher tax collections from value-added tax (VAT).

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Looking ahead, Mendoza said collections were likely to increase further as the ongoing war continues to drive oil prices higher, though he cautioned that rising energy costs may also weigh on consumption.

“As to oil prices, higher prices may increase collection in certain tax lines connected to petroleum products and related economic activity, but we do not view oil prices as the main driver of April revenues,” Mendoza told the Inquirer.

“Rising energy costs can create pressure on businesses and households by increasing operating expenses and affecting demand, so the overall impact is mixed.”

Also supporting April’s collections is the annual income tax filing season, the deadline for which has been moved to May 15 from April 15. According to Mendoza, the extension was granted in consideration of the national energy emergency.