BIR attains collection target, rakes in P1.5 trillion in H1

July 19, 2025 | 12:00am

MANILA, Philippines — The Bureau of Internal Revenue (BIR) generated P1.5 trillion in revenues in the first half, driven by strong performance in the recreation sector despite a downgraded economic outlook.

The revenue collection in the first half marked a 10.3-percent increase from the P1.36 trillion collected during the same period in 2024.

The figure also hit the agency’s first-half target of P1.5 trillion, underscoring sustained improvements in tax compliance and enforcement.

BIR Commissioner Romeo Lumagui Jr. attributed the surge in collections to strong performance in the entertainment and recreation sector, which posted the highest year-on-year percentage growth in tax payments.

“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,” he said in an interview with Bilyonaryo News Channel.

“We’re also looking at administrative and support services. It is also performing well for this year in terms of percentage increase in collections,” the commissioner said.

Lumagui noted that tax collections from household employment activities doubled compared to last year, while manufacturing as well as the information and communication industry posted significant increases in absolute terms.

He added that a key highlight for the agency is the surge in contributions from small taxpayers – those earning gross revenues between P3 million and P20 million annually – with tax collections from this segment rising by more than 80 percent, indicating broader compliance across income brackets.

BIR said the positive collection figures come even as the Development Budget Coordination Committee (DBCC) revised the country’s 2025 fiscal targets due to slower-than-expected economic growth.

The DBCC earlier lowered the national revenue target to P4.52 trillion from P4.644 trillion, with the BIR’s collection goal adjusted slightly to P3.219 trillion from P3.232 trillion.

Lumagui said that another recalibration could be possible. “I think there might be a recalibration of the goal again considering that the assumption is not going to happen. But there’s no final figure yet.”

He also said that there will be difficulties in achieving the BIR’s collection target this year, but the agency will do its best despite the performance of the economy.

“For the second half, the BIR is right on track. 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,” he added.

In 2024, the BIR collected a total of P2.85 trillion.