DOF expects BIR to exceed target in 2021
The Duterte administration’s chief economic manger expects the Bureau of the Internal Revenue (BIR), the government’s main tax agency, will surpass its collection target this year.
Speaking at the virtual BIR’s Tax Campaign Kick-off ceremony on Wednesday, Feb. 17, Finance Secretary Carlos G. Dominguez III said he is confident that the bureau would be able to overshoot its P2.08-trillion collection goal for 2021.
Dominguez said the BIR faces the “great task” of raising as much revenues as possible to fund the comprehensive effort of defeating the COVID-19 pandemic and supporting the nation’s economic recovery.
He said the digitalization initiatives put in place by the BIR, along with its improved administrative systems and dedicated workforce, will enable the bureau to achieve its 2021 collection goal.
The collection performance of the revenue agencies, especially the BIR, “will greatly matter for our nation’s future," Dominguez said.
“Now more than ever, the whole nation relies on the BIR’s bold commitment to provide the revenues needed to support our people and push our country forward towards a strong economic recovery,” Dominguez said.
“I have no doubt that the target will not be just met, but will be exceeded again,” he added.
Dominguez noted that in 2020, the BIR was able to exceed its adjusted collection target by 15.7 percent despite the limitations set by the pandemic, by making use of digital tools to efficiently collect taxes.
“That accomplishment goes a long way in reinforcing our fiscal position,” he said.
Last year, 85 percent of total tax payments was coursed through electronic channels, while almost 100 percent of tax returns was filed online, which are both indications of an “irreversible trend,” Dominguez said.
“The pandemic fast-tracked the application of new technologies for tax payments and settlements. The BIR was not behind in this transformation,” he said.
Dominguez said the BIR’s praiseworthy feat would not have been possible without the “heroic cooperation” of the taxpaying public, especially the large taxpayers who contributed the bulk of the revenues collected by the bureau.
“Our diligent taxpayers make the great task of collecting revenues much lighter. Your patriotism will not go unrecognized,” Dominguez said.