‘That’s the problem when the DBCC targets are too high because if the GDP is high, then you expect revenues to be higher. If you fail to hit those targets, you will fail to hit the revenue and your deficit becomes higher’
The Department of Finance (DoF) is confident that the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) will continue to grow its collection to help secure the government’s target of P4.3 trillion in total revenue collection this year.
“Our revenue collection today seems to be on target. In the first three months, the Bureau of Internal Revenue hit the revenue target which is more or less a 14 percent increase from last year,” DoF Secretary Ralph Recto said.
The BIR aims to collect a total of P3.055 trillion from taxes this year. This amount is 21 percent higher than the P538.18 billion it recorded in 2023.
From January to February alone, the BIR had reported its collection year-on-year jumped by over 24 percent to P446.42 billion.
BIR Commissioner Romeo Jun Lumagui Jr. attributed the growth to the agency’s numerous filing of cases against businesses issuing fake receipts, digitalization of tax processes, and tax literacy projects in communities and on social media.
Surpassing
collection targets
Meanwhile, BoC data shows that the agency showed has surpassed its March collection target by 3.45 percent to P75.429 billion.
However, Recto said collection targets both for the BIR and the BoC are open for review as the government aims for “realistic” goals.
The Development Budget Coordination Committee (DBCC) downgraded this year’s economic growth or GDP forecast range at 6 to 7 percent from 6.5 to 7.5 percent, as inflationary, geopolitical and trade risks linger.
“That’s the problem when the DBCC targets are too high because if the GDP is high, then you expect revenues to be higher. If you fail to hit those targets, you will fail to hit the revenue and your deficit becomes higher,” Recto explained.
“That’s why we wanted to put a more realistic GDP growth number,” he added.
Recto said the DoF and the two bureaus will “soon” discuss collection targets for this year until 2028.
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