BIR tops April goal despite fuel tax suspension

The Bureau of Internal Revenue (BIR) collected P422.378 billion in April, exceeding its monthly target despite the extension of the annual income tax return filing deadline and ongoing relief measures aimed at cushioning the impact of rising fuel prices.

Preliminary data as of 13 May showed collections surpassed the April goal by P12.776 billion, or 3.12 percent. Revenues were also slightly higher than the same month last year, increasing by P551.11 million, or 0.13 percent year on year.

The stronger-than-expected performance came even after President Ferdinand Marcos Jr. ordered the extension of the 2025 Annual Income Tax Return filing deadline to give taxpayers additional time to complete requirements and avoid penalties.

BIR Commissioner Charlito Martin Mendoza attributed the sustained collections to intensified enforcement and compliance efforts across the agency.

“Even with the extension of the Annual Income Tax Return filing deadline, the BIR sustained solid collection performance in April, reflecting the impact of higher taxpayer confidence, better digital services, and continuing reforms under the BIR DARES reform agenda,” Mendoza said.

For the January-to-April period, the BIR collected P1.155 trillion, exceeding its four-month target by P9.631 billion, or 0.84 percent. Compared with the same period last year, collections rose by P39.972 billion, reflecting a 3.58-percent year-on-year increase.

The latest figures come as the government implements temporary tax relief measures to address the impact of elevated oil prices and the Middle East conflict.

Earlier, the Department of Finance (DOF) and the BIR issued joint guidelines for the suspension of excise taxes on fuel under the Tax Reform for Acceleration and Inclusion Law, following the trigger mechanism tied to rising global crude prices.

The suspension covers excise taxes on gasoline, diesel, and kerosene once average Dubai crude prices breach the threshold set under the law — a move expected to reduce government revenues but ease inflationary pressures on consumers and businesses.

The Bureau has also been accelerating reforms under its DARES agenda, which includes overhauling audit procedures, expanding digitalization, and improving taxpayer services to increase efficiency and reduce opportunities for corruption. Earlier this year, Mendoza said the BIR would shift toward a more data-driven and technology-based audit system to make tax investigations more targeted and less burdensome for compliant taxpayers.

Despite the positive April performance, economists noted that tax collections may still face pressure in the coming months due to slower economic activity, fuel tax suspensions, and weaker global growth. The DOF earlier warned that around P43 billion would be lost under the LPG and kerosene excise tax suspensions.

Despite these hurdles, Mendoza said the BIR remains on track to meet its full-year collection goal.

“We remind taxpayers who availed of the extension to file their Annual Income Tax Returns and pay the corresponding taxes due by May 15, 2026. They should use the remaining time to complete their requirements properly and avoid the rush on the last day,” Mendoza said.