THE Bureau of Internal Revenue (BIR) has exceeded its revenue collection target for the first half of 2025, reflecting the agency’s momentum amid a trimmed full-year goal prompted by slower-than-expected economic growth.
“We are proud to say that we have achieved that P1.5 trillion [target] for the first half of the year. So, the BIR is really doing well for the first semester,” BIR Commissioner Romeo Lumagui Jr. said.
He said the figure is 0.5 percent higher than the first-half target, the result of the BIR’s continued drive to boost compliance and widen the tax base.
“This accomplishment says that the BIR is right on track, that we’re going the right path and what we’re doing is good. We just have to continue and improve on a lot of certain things.”
The BIR chief noted that growth has been particularly notable in specific sectors.
“For the sectors, we have in terms of growth rate, the percentage, we’re looking at the arts, entertainment, and recreation. [They’re] doing well in terms of percentage increase compared with the performance last year. We’re also looking at administrative and support services. It also is performing well for this year in terms of percentage increase in collections,” he said.
He added that household employment activities saw tax collections double year-on-year, while in terms of absolute numbers, a huge increase was seen in manufacturing and the information and communication industry.
A key highlight for the agency is the surge in contributions from small taxpayers — those earning gross revenues between PHP3 million and P20 million annually.
“We’ve seen increase of more than 80 percent in tax collection from this taxpayer segment, a promising sign of broadening tax compliance across different income brackets,” Lumagui said.
The BIR’s first-half performance comes as the Development Budget Coordination Committee (DBCC) revised the 2025 fiscal program in light of a moderated economic outlook.
The DBCC lowered the national revenue target to P4.520 trillion from P4.644 trillion, with the BIR’s collection goal adjusted slightly to P3.219 trillion from P3.232 trillion.
GDP growth is now projected at 5.5 percent to 6.5 percent, down from the initial 6.5 percent to 7.5 percent range.
Lumagui acknowledged that another recalibration could be possible. (PNA)
