Bigger picture beyond a single taxpayer

Last week, the BIR made headlines with a record-breaking collection in 2024 that reached a staggering P2.85 trillion. This impressive feat marked a 13-percent increase from the previous year’s P2.52 trillion and was the first time in two decades that the agency had met its annual target.

President Ferdinand Marcos Jr. hailed the achievement, emphasizing the monumental impact the funds would have on the Philippines. With this significant contribution, the country can now look forward to funding over a million new schools, 190,000 kilometers of roads, and 167,000 rural health facilities — vital infrastructures that will ripple through the economy and give hope to many dreamers who envision a better Philippines.

While the record collection is a triumph, tax evasion still deprives the government of vital revenue.

Amid the celebration, the Chief Executive aired a stern warning against those who evade their tax obligations. He appealed to the citizens’ and businesses’ sense of civic duty and to think of the possibilities their individual contributions could create for the national good.

Moving forward, strengthening enforcement, expanding public education on tax responsibilities, and streamlining the bureaucratic process are crucial steps. Political instability and growing debt threaten long-term progress, requiring careful fiscal management.

Additionally, adapting to digital taxation and improving the tax infrastructure are essential for maintaining global competitiveness. The path forward depends on strong governance, efficient systems, and a collective commitment to sustainable progress.

And much like the contribution one taxpayer can make, the role of a single — yet powerful — group like the Asian Consulting Group (ACG) can help strengthen the government’s push in enjoining compliance and furthering collections.

Over the years, ACG, founded by no less than “the Philippine Tax Whiz” himself, Mon Abrea, has played a crucial role in advocating for taxpayer education and promoting tax compliance with its international roadshows and policy advocacies. More impressively, it has given way to bolder voices and critical insights that drive meaningful lasting change.

As a thought leader in tax reform, ACG prides itself on being at the forefront of tax discourse. ACG has become the prime platform in bringing together global tax experts and policymakers to discuss issues on digital taxation, environmental tax reform and the need to streamline tax compliance to make the process of doing business smoother, more efficient, and more equitable.

I am honored to share that I, too, am part of this important mission. Recently, I was appointed a member of the ASG Board of Advisors, an acknowledgment of the trust and responsibility given to me.

This position would allow me to contribute directly to the ongoing work of ACG, strengthening its role in advocating for progressive tax reform, enhancing global cooperation and fostering an environment where tax compliance is not a burden but a shared opportunity for growth and development.

While the record collection is a triumph, tax evasion still deprives the government of vital revenue.

Looking forward, the road ahead is clear but the journey is far from complete. The momentum generated by the BIR’s record-breaking collection must serve as a springboard for future efforts. This success must be followed by sustained efforts to ensure that the benefits of these investments are realized, that tax compliance remains high and that the Philippines remains on a trajectory of growth and inclusive prosperity.