BAGUIO CITY — Bureau of Internal Revenue (BIR) Cordillera revealed that the agency fell short of its 2025 collection target by more than P1 billion.

BIR Cordillera Regional Director Joseph Catapia reported that the agency was assigned a target of 11.454 billion pesos for the previous year but only managed to collect 10.34 billion pesos. This figure is also lower than the 10.799 billion pesos collected by the regional office in 2024.

Catapia identified a significant decrease in tax remittances from the Department of Public Works and Highways (DPWH) Cordillera as a primary reason for the shortfall. Records show that the department's remittances dropped from 2.439 billion pesos in 2024 to 1.556 billion pesos in 2025.

The director noted that several government projects faced delays due to alleged anomalies, which subsequently pushed back the schedule for withholding tax payments.

In response to the said deficit, DPWH-Cordillera informed the BIR that they are currently awaiting the release of funds from their central office. However, the department has committed to settling approximately 7 billion pesos in disbursements to former contractors within the first quarter of 2026.

Once the payments are processed, the agency is expected to remit an estimated 490 million pesos in taxes for the current quarter.

Beyond the challenges with government remittances, Catapia stated that the regional construction and tourism industries also impacted overall collections.

He noted a specific decline in tourist arrivals in Baguio City during 2025 compared to the previous year, which contributed to the lower revenue performance for the region.