THE Bureau of Internal Revenue (BIR) said it remains optimistic about a revenue rebound in 2026 after missing its target with a 2025 performance of P3.105 trillion.
BIR Commissioner Charlito Martin R. Mendoza said via Viber on Thursday that the preliminary figure for 2025 is net of refunds.
The total came in 3.56% below the full-year target but exceeded the 2024 collection total of P2.85 trillion.
“During the second half, starting July, when the flood control investigations started, our revenue collection efforts were really significantly affected, primarily because of the slowdown in spending,” he told reporters on Thursday.
Mr. Mendoza said he remains “very optimistic” that momentum will build following a 7.5% increase in December revenue.
“We will do our best to hit the target. The government needs it. We have many projects that need funding,” he said.
The BIR suspended field audit operations in December in the face of allegations the audit process is being used for extortion.
For 2026, the BIR is tasked to collect P3.58 trillion, 11.19% higher than its 2025 target.
Mr. Mendoza added that the BIR is moving towards a streamlined, consolidated LoA framework.
“We’re looking at the possibility of having just one level of authority per taxpayer per taxable year, covering all internal revenue taxes,” he said.
The BIR is also reducing the number of offices that can issue these documents and implement risk-based norms for authorizing audits.
Mr. Mendoza said proposed measures in Congress to cut the value-added tax rate will significantly impact collections.
“It’s a policy decision that belongs to Congress. What we do is tax administration. We do our best to maximize collections (by being) efficient… but fair,” he added.
Legislators have proposed to reduce the 12% VAT rate to 10%. — Aubrey Rose A. Inosante