The Bureau of Internal Revenue (BIR) collected P2.65 trillion in tax revenues from January to October 2025 — a 9.55 percent increase year-on-year, according to the Bureau of the Treasury’s (BTr) latest Cash Operations Report released Wednesday, 26 November.

The BTr said the growth was driven mainly by higher collections from individual and corporate income taxes, taxes on banks and financial institutions, and excise taxes on tobacco products.

BIR collections accounted for 69.62 percent of total government revenues during the 10-month period. Overall revenues rose 1.13 percent to P3.81 trillion, supported by a 7.45 percent pickup in total tax collections.

Public scrutiny

The BIR has recently faced public scrutiny following allegations that its personnel have been “weaponizing” Letters of Authority (LOAs) and Mission Orders (MOs), which authorize tax audits on individuals and businesses.

Earlier this week, Senator Erwin Tulfo claimed the existence of a kickback scheme inside the Bureau, alleging that LOAs and MOs were used in a widespread extortion operation in which up to 70 percent of collections were illicitly retained.

Tulfo has since called on the Senate Blue Ribbon Committee to investigate the alleged scheme.

In response, the BIR ordered the immediate suspension of all LOAs, MOs, and field audits. BIR Commissioner Charlito Mendoza also launched an internal investigation into reports that BIR employees are involved in a money-making scheme linked to the issuance of LOAs.

The government relies heavily on BIR tax collections to fund essential public services and sustain national development.

BIR collections

In 2024, BIR collections accounted for roughly 86 percent of total government revenues, supporting spending on infrastructure, healthcare, education, social welfare and other priority programs.

“That’s why I’m calling on our stakeholders, our taxpayers who experienced abuse from BIR personnel, to come to us, directly to me, to my office, so they can provide details,” Mendoza said.

The BTr report, meanwhile, also showed that government spending from January to October reached P4.91 trillion, or 80.8 percent of the revised P6.08-trillion full-year program.

Infrastructure delays

Expenditures rose 3.9 percent year-on-year, with primary spending up 2.45 percent, tempered by infrastructure delays linked to the ongoing DPWH flood-control probe.

Interest payments climbed 13.24 percent to P723.2 billion, representing nearly 15 percent of total disbursements.

As a result, the national government’s fiscal deficit hit P1.11 trillion as of end-October 2025, broadly aligned with the administration’s full-year fiscal consolidation targets, according to the BTr.