BIR collections breach P2 trillion mark in July

MANILA, Philippines — The Bureau of Internal Revenue (BIR) crossed the P2-trillion mark in revenue collections in end-July, leaving the tax agency with four months to chase the remainder of its P3.39-trillion full-year target.

The BIR reported a 5.4-percent increase in collections to P2.003 trillion from January to July compared to P1.9 trillion in the same period last year.

The figure was also 0.7 percent higher than the P1.99-trillion goal set for the seven-month period.

BIR Commissioner Charlito Martin Mendoza said the agency has already collected around 60 percent of its annual collection target for 2026, but still has to collect P1.39 trillion in the remaining months.

Mendoza said this reflects improving taxpayer compliance and the sustained collection efforts of the Revenue Regions, Revenue District Offices and the Large Taxpayers Service.

“We remain guided by the President’s directive to make government services more accessible to taxpayers and by (Finance) Secretary Frederick Go’s direction to make tax administration fairer and more efficient for businesses and investors,” Mendoza added.

For July alone, the BIR grew its collections by 5.7 percent to P358.44 billion from P339.03 billion in the same month last year, exceeding the P336.07 billion monthly target by about 6.7 percent.

“These results show that better taxpayer service, clearer rules and effective enforcement can support stronger compliance and collection,” Mendoza said.

Under its five-point reform agenda, BIR DARES, the BIR continues to simplify tax rules and processes, expand digital services, improve taxpayer assistance, strengthen audit safeguards and enforce tax laws against deliberate noncompliance.

The agency said these reforms are part of the BIR’s broader effort to improve compliance while protecting the government’s revenue base.

“We will continue helping taxpayers comply correctly and on time, while making sure that taxes properly due are collected fairly and efficiently,” Mendoza said.