GCash tax transactions soared in 2020 to P1.5 B
GCash e-payments for the Bureau of Internal Revenue (BIR) taxes soared last year, signifying a shift in user behavior, where customers find it more convenient to pay digitally, the leading mobile electronic wallet provider said.
In a statement, Martha Sazon, Gcash president and chief executive, said tax payments through their e-wallet app climbed by 286 percent to P1.5 billion in 2020, boosting e-payment growth for the government’s main tax agency.
For this reason, Sazon expects government online transactions would further grow in 2021, similar to what they have observed last year.
“This trend shall continue not only because of health and safety interests against the pandemic, but also because online payments are more convenient, and has been proven to be one of the most efficient methods for transacting with the public sector,” Sazon said.
Paying BIR taxes using the GCash app is very convenient. A customer with a GCash account must just log in to the app, proceed to Pay Bills, select Government, and tap the BIR button.
From there, the customer simply needs to enter what form series they need to settle, the return period of the form, their Tax Identification Number (TIN), their Branch Code, and the amount to pay. Payment will be reflected within three business days.
At the onset of 2020, government transactions were disrupted because of the COVID-19 pandemic. However, the government’s quick pivot towards using fintech solutions such as GCash to continue operations were vital to the progress of the Philippine economy.
Last year, the Department of Social Welfare and Development (DSWD) tapped GCash to disburse over P16 billion in social amelioration programs (SAP) funds to over two million Filipinos.
Aside from the BIR, customers can also use GCash to pay for other government agencies. It also has over 400+ partner billers inside the app, ranging from academic institutions, credit cards, telecoms, utilities, and transportation.
GCash supports the BIR’s initiative in its collection targets through electronic payment channels. The BIR earlier this year announced that 86 percent of their collections were from online tax payments, surpassing their revenue targets for 2020.
“We congratulate the BIR for its exceptional performance in 2020 amidst the pandemic. GCash fully supports the bureau’s campaign against delinquent taxpayers and tax dodgers, and for a more efficient tax collection process,” Sazon said.
“Rest assured that GCash will continue doing its part on enabling financial inclusion in the country,” she added.
Globe Fintech Innovations Inc. (Mynt), which operates GCash, is part of the portfolio companies of 917Ventures, the largest corporate incubator in the Philippines wholly-owned by Globe Telecom Inc.