The Bureau of Internal Revenue (BIR) said Thursday it missed its 2023 revenue collection target mostly because of the revised value added tax (VAT) filing under the Tax Reform for Acceleration and Inclusion Law.
BIR Commissioner Romeo Lumagui told reporters the agency collected P2.5 trillion last year, up by 7 percent from P2.34 trillion in 2022.
The agency, however, fell short of its full-year revenue target of P2.67 trillion.
Lumagui blamed the lower revenue collection last year to the timing of VAT filing from monthly to quarterly basis or within 25 days after the close of every taxable quarter.
He said if the fourth-quarter VAT collection was included last year, the total collection may hit nearly P2.6 trillion.
Finance Secretary Ralph Recto said one of the reasons for lower revenue collection was that the fourth-quarter VAT was paid in 2024.
“But essentially, I think they did a good job. I think the bigger challenge will be for 2024, because the revenue targets are high as well,” he said.
Recto assured the taxpaying public of the judicious and efficient use of their hard-earned money, vowing to eradicate inefficiency or corruption within the BIR.
The government targets to collect P4.3 trillion in revenues in 2024. The bulk of the tax revenues amounting to P3.05 trillion will be generated by the BIR, while the Bureau of Customs (BOC) is expected to contribute close to P1 trillion.
“These revenues will fuel our economic engine towards Bagong Pilipinas—a more inclusive and sustainable Philippine economy marked by lower poverty rates; increased infrastructure and human capital investments; more quality jobs for our people; and improved public services,” Recto said.
Recto underscored both the patriotic roles of the BIR and taxpayers in the nation’s progress through prompt, correct and efficient tax payment and collection.
“Diligent taxpayers make the great task of collecting revenues much easier,” he said.
He said that on the part of the BIR, there is need to accurately assess and collect the right taxes, continue improving on digitalization and expedite the implementation of the Ease of Paying Taxes Act to ensure excellent taxpayer service.
“When both sides effectively play their roles, we pave the way to progress with certainty,” Recto said.
Recto expressed confidence in the ability of the BIR to not only meet but surpass this year’s revenue collection target.