BIR collections inch up to P358 billion in January

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February 24, 2026 | 12:00am

MANILA, Philippines — The Bureau of Internal Revenue (BIR) saw its tax collections increase slightly to P358 billion in January, while anticipating faster economic growth, digitalization and recovery in infrastructure spending to lift full-year collections this year.

Preliminary data showed collections stood at P358 billion in the first month of 2026, BIR Commissioner Charlito Mendoza said yesterday during a tax compliance verification drive (TCVD).

The amount, which is still subject to reconciliation, is 0.82 percent higher than the P355.1 billion generated in the same month last year.

It also accounts for 10 percent of the P3.58-trillion target for the full-year of 2026.

However, the Development Budget Coordination Committee pegged the BIR’s target intake at P3.431 trillion based on its December meeting.

Mendoza said the agency is banking on the projected five to six percent gross domestic product (GDP) growth this year to boost revenue collections, which, in turn, will translate into higher tax collections.

“This will translate into higher VAT (value added tax), excise, income tax and then the digitalization initiatives, real-time, near-time monitoring, to prevent revenue leakages,” he said.

The projected GDP growth is faster than the 4.4 percent slowdown last year amid a corruption case that has dented investment. This was the weakest pace in five years or since 2011, excluding the pandemic.

“Hopefully, this year, the infrastructure projects of the government will help increase the revenue that the BIR collects,” Mendoza added.

Last year, the BIR surpassed its collection target, posting P3.105 trillion and exceeding the P3.101 trillion emerging goal, which had been lowered in December.

For the rollout of its taxpayer education program, BIR officials conducted field visits at the 168 Mall in Binondo, Manila, to inspect tax compliance, but no penalties have been issued.

Meanwhile, Victor Lim, president of the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc., urged Chinese businessmen: “Pay the right taxes to the government.”

“It’s a very friendly visit of our Commissioner. (This) encourages more paying of the right taxes. So, it will be beneficial for our country,” Lim told reporters during the TCVD.