The Bureau of Internal Revenue (BIR) is targeting P3.1-trillion in tax collections for 2025 as part of the government’s revenue plan, according to newly-appointed Commissioner Charlito Mendoza.
While the agency remains confident, officials acknowledge the goal may be under pressure due to slower economic activity and some delayed government expenditures.
Conservative Estimate
For the first nine months, the BIR collected nearly P2.32-trillion, representing about 72-73% of the full-year target. Commissioner Mendoza described the P3.1-trillion figure as a “conservative” estimate given current headwinds, noting that the agency may still exceed this level depending on year-end performance.
This slowdown in collections is partially attributed to a pause in government spending, particularly in infrastructure and flood control - which has ripple effects on tax receipts.
Strategic Focus
To meet its target, the BIR is intensifying efforts in several fronts:
1. Strengthened enforcement of major tax types (income tax, VAT, excise) and improved compliance monitoring.
2. Further digitalisation of tax processes, including e?invoicing and streamlined services, to reduce leakages and improve efficiency.
3. Meeting the collection goal is critical: the government’s fiscal stability and ability to finance priority programs depend on robust revenue inflows. Any significant shortfall could prompt adjustments in spending or borrowing.
However, the remainder of the year will be crucial. With only a few months left, the BIR is pushing hard to ramp up collections and close compliance gaps. Whether the P3.1-trillion benchmark is hit or exceeded will be a key signal for public?finance health as the Philippines heads into 2026.
