Exec: BIR must target P10-T take
Abrea said his desired P10-trillion collection should help pay for the government’s growing debt which rose by nearly 2 percent to P16.31 trillion between December 2024 and January 2025.
The Bureau of Internal Revenue plans to strictly implement withholding tax for online sales
The Bureau of Internal Revenue (BIR) must intensify investigations into big companies and wealthy individuals, including politicians, to stop tax evasion in the country and boost tax collection to P10 trillion, a tax adviser and advocate of efficient taxation said.
Asian Consulting Group (ACG) founder and chief executive officer Mon Abrea said the BIR must aim to identify at least 100 biggest tax evaders in the country and hold them accountable.
In this way, the ACG founder said the government can mobilize much more funds to implement critical projects for public service effectively.
“Ninety-seven percent of our tax collection is still voluntary,” Abrea said last Thursday in a media briefing in Bonifacio Global City, Taguig. “Politicians are living in big houses and own big SUVs. The amounts of their assets are so much bigger compared to the salaries they are receiving,” he added.
Abrea delivered these statements to answer questions from the media regarding the ACG-led International Tax and Investment Conference to be held on 26 March at Manila Marriott Hotel in Pasay City.
His statements also came amid the campaign season for the mid-term elections on 12 May for national and local positions, including senator and mayor.
Likely boost in revenues
With intensified crackdown on big-time tax evaders, Abrea said the BIR should be able to boost tax collection to P10 trillion or higher, above its P2.86 trillion collection last year. “Vietnam collected almost P20 trillion, yet the Philippines is a bigger nation,” he said.
BIR Commissioner Romeo Lumagui Jr. said he aims to collect at least P3.23 trillion in total tax collection this year.
Abrea added his desired P10-trillion collection should help pay for the government’s growing debt which rose by nearly 2 percent to P16.31 trillion between December 2024 and January 2025, according to the Bureau of the Treasury.
The ACG executive added the government will not be able to boost tax collection if fear about tax compliance is mostly felt by micro, small and medium enterprises.