Government recalibrates BIR, BOC collection targets

MANILA, Philippines — Economic managers have lowered the government’s tax revenue goal to P4.44 trillion this year, along with adjustments to the collection targets of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).

The Marcos administration set its tax revenue collection goal at P4.44 trillion for this year, down from P4.5 trillion previously, following an adjustment by the Development Budget Coordination Committee (DBCC) at its 193rd meeting.

The BIR is now expected to collect P3.39 trillion, slightly below the previously set P3.43-trillion target.

On the other hand, Customs saw its goal raised to P1.011 trillion from the previous goal of P1.003 trillion.

Latest data from the Bureau of the Treasury showed the BIR collected P1.42 trillion as of end-May, while the BOC’s haul was at P405.68 billion.

At the same time, the DBCC raised its non-tax revenue target to P365.1 billion this year from the previous goal of P349.9 billion.

Overall revenue collections are expected to increase to P4.81 trillion this year, P5.21 trillion in 2027 and P6.52 trillion by 2030.

Economic managers said the updated medium-term macroeconomic assumptions, growth targets and the fiscal program were made to ensure that the government’s economic strategy remains responsive to evolving global and domestic developments.

As the Philippines was placed under an energy emergency, the government rolled out relief measures to cushion households from soaring costs. These include the three-month suspension of excise taxes on select fuel products, aimed at easing the burden of the oil shock.

Finance Secretary Frederick Go said that the government incurred an estimated P2.5 billion in forgone revenue from the three-month suspension of kerosene and liquefied petroleum gas products.

The Department of Energy certified that Dubai crude averaged $79.45 per barrel from June 1 to 30, based on the Mean of Platts Singapore benchmark, prompting the lifting of the suspension, as it was below the $80-per-barrel trigger under Executive Order 114.

Go added that the DBCC could again recommend suspending the excise taxes should average Dubai crude prices rise above the threshold of $80 per barrel.

“We can again make a recommendation (to the President) to reduce or suspend the excise taxes,” he told reporters.