BIR collections rebounded in December 2025  

Bureau of Internal Revenue. FILE PHOTO

MANILA, Philippines — Collections of the Bureau of Internal Revenue (BIR) rebounded in December, pushing full-year revenues past the P3-trillion mark, but the agency is still likely to miss its target after months of weak growth.

In an interview with reporters, BIR Commissioner Charlie Mendoza said revenue collections as of Jan. 7 had reached P3.103 trillion, net of refunds. He added that the figure is still expected to rise as December reports from authorized agent banks continue to come in.

Revenue growth in December climbed to 7.5 percent year on year, rebounding from the sluggish 3.1 percent growth recorded between July and November.

“Our December performance was good. As you know, we were doing well during the first half of the year, but our revenue collection efforts were significantly affected in the second half when the flood control investigations started,” Mendoza said in Filipino.

READ: BIR suspends audit operations amid complaints of abuse

Stronger than expected

The commissioner added that December audits are yet to be logged, making the current growth stronger than expected.

Despite the late rebound, however, the BIR is still expected to fall short of its P3.2-trillion collection target for 2025, an outcome Mendoza has already conceded.

Mendoza earlier projected that the agency would end the year with around P3.1 trillion in collections, which he hoped to achieve through intensified digitalization efforts and a more service-oriented tax administration.

READ: New BIR chief targets P3.1-T tax take for 2025

Bullish on 2026

This year, the agency is targeting to collect P3.579 trillion in revenues, roughly an 11-percent increase from its 2025 program.

While the Development Budget Coordination Committee has already trimmed economic growth targets for 2026 through 2028, there has yet to be any word on revising tax revenue targets.

Mendoza said he remains bullish that the BIR can meet its goal despite persistent headwinds, expressing hope that the severe impact of the widening antigraft drive on flood control projects can finally be cushioned.

On Jan. 8, the BIR filed a tax evasion complaint with the Department of Justice against contractor Mark Arevalo, sole proprietor of Wawao Builders, over alleged tax deficiencies amounting to P48.39 million. This marked the 13th complaint filed by the agency in connection with anomalous flood control projects. The BIR said it was also investigating other individuals involved in the scandal.

These complaints, Mendoza said, are expected to bolster the agency’s tax collection efforts.

“We’re very optimistic. We will do our best to meet the target because the government needs it. We have a lot of projects that need to be funded, and a big part of the P6.793-trillion 2026 national budget comes from BIR collections,” he said.

On VAT rate

Meanwhile, asked about a Senate bill seeking to cut the expanded value-added tax to its original 10 percent from 12 percent, Mendoza said the proposal would have a significant impact on revenues.

READ: Erwin Tulfo pushes first EVAT cut in 37 years

“That’s about one-sixth of our collections, but again, that is a policy decision of Congress,” he said. “On our part, we will do our best to maximize revenue collection in a way that is efficient and fair.”

In 2024, value-added tax collections accounted for more than 20 percent of the BIR’s total revenues. INQ