BIR Collects ₱358 Billion in January — But That's Barely a Dent in Its Massive ₱3.58 Trillion Target for 2026

The Bureau of Internal Revenue kicked off 2026 with ₱358 billion in tax collections for January — a slight 0.82% bump from the ₱355.1 billion collected in the same month last year. It sounds like a lot of money, and it is, but it only accounts for about 10% of the BIR's staggering ₱3.58 trillion full-year target.

BIR Commissioner Charlito Mendoza shared the preliminary figures during a tax compliance verification drive at the 168 Mall in Binondo, Manila — yes, that 168 Mall. Officials conducted friendly field visits to inspect tax compliance among Chinese-Filipino businesses, though no penalties were issued. Victor Lim, president of the Federation of Filipino-Chinese Chambers of Commerce, urged Chinese businessmen to "pay the right taxes to the government."

Mendoza is banking on the Philippines' projected 5-6% GDP growth this year to lift revenue collections. That growth rate would be a significant rebound from 2024's disappointing 4.4% — the weakest pace in five years outside the pandemic, dragged down by corruption scandals that spooked investors.

"This will translate into higher VAT, excise, income tax, and then the digitalization initiatives, real-time, near-time monitoring, to prevent revenue leakages," Mendoza said. He's also pinning hopes on a pickup in government infrastructure spending, which slowed last year but is expected to ramp up in 2026.

Last year, the BIR actually surpassed its target, posting ₱3.105 trillion against a ₱3.101 trillion goal. But this year's target is significantly higher — roughly ₱475 billion more. Kaya the pressure is on from Day 1. If the economy cooperates and digitalization plugs the leaks, Mendoza might just hit it. Kung hindi, expect more surprise visits to Binondo.

Source: Philstar