PHILIPPINE GOVERNMENT a major center of income generationcies are sure to meet their revised goals for the full year, after to send high collections to the first half of the year.
Bureau of Internal Revenue (BIR) Commissioner Charlito Martin R. Mendoza said the rapid economic growth in the second half of the year will improve tax collection.
“We hope that our infrastructure utilization will improve, and our economic activities will accelerate in the coming months,” said Mr. Mendoza told reporters last week.
“We hope that there will be a high gross domestic product growth in the coming months because it really affects value-added tax, percentage tax and other businessestaxes,” he added.
The Philippine economy grew slower than expected by 2.8 percent in the first quarter, the weakest growth since the start of the pandemic and well below the 5.37 percent growth in the same quarter last year.
The Ministry of Economy, Planning, and Development earlier said that the ongoing effects of last year's corruption and escalation.conflict in the Middle East There is likely to be a weight of growth in the second half. However, it expects to recover in the second semester during the taking of public money.
Provisional data from the BIR showed it collected P1.65 trillion in the first six months, up 5.33% from P1.567 trillion a year ago.
“But it's still very little… We're still reconciling; it's not over yet. But it's much higher (than last year). Although our growth rate in June is not that high like that of May, which was 15%,” said Mr. Mendoza.
“But you have to understand that in June last year we had a deadline to get the real estate tax amnesty. So, the income from the real estate tax amnesty came in,” he added.
BIR's first half collections accounted for 48.6% of the Development Budget Coordinating Committee (DBCC) revised downwards collection of P3.393 billion for 2026 collections.
Mr. Mendoza acknowledged that the revised target collection is still a “long process.”
“The target is about P3.4 trillion. We collected P3.1 trillion last year. That's still close to 10% growth, so it's still a long time, but we're doing everything we can to reach our goals,” he said. “So far, we are doing well especially with reducing P38 billion from our target.”
Mr. Mendoza said the agency hopes to book strong collections from non-resident digital service providers and excise duties, among others.
BOC TARGET HIGH
Meanwhile, the Bureau of Customs (BoC) CommisAriel F. Nepomuceno said the DBCC may consider the latest foreign exchange (forex) movement and other macroeconomic factors while increasing the organization's fundraising goal by P7.2 billion.
The DBCC increased the BoC's 2026 revenue target by 0.7% to P1.011 trillion from P1.003 trillion previously. This is as it adjusted the peso-dollar exchange rate forecast to P60-P62 this year from P58-P60 previously.
The peso traded above P61 per dollar in July. It closed at P61.587 against the dollar on Friday, strengthening by 3.3 centavos from its close of P61.62 on Thursday.
“In particular, it is changes in peso-dollar exchange rates and other macroeconomic factors, as well as seeing economic growth,” said Mr. Nepomuceno told reporters last week.
“But we can still achieve it, but our remaining P11.8 billion will just be used to pay for that additional P7 billion,” he added, referring to the amount collected in the first half exceeding the agency's target.
In the first half, BoC collections increased by 7.2% to P491.75 billion from P458.77 billion last year. Collections also exceeded the P480.27-billion target for the period by 2.4%.
“There is still room for improvement, such as the level of testing or the overall collection that is finished the total amount of imports,” said Mr. Nepomuceno.
The Customs official said his analysis of the average rates over the past years shows that the rates at some ports are low and could be improved.without departing from the transaction value system.
“There are certain things that are imported from other countries that I know if we increase the level of inspection, we will increase the collections, but you have to do that in increments,” he said.
“Remember, we are in the transaction value system, which means we have to respect what they want, based on their documents, the actual prices they pay for their purchases abroad. We have reference prices, but we will respect their documents,” he added. – Justine Irish D. Tabile
