The government expects double-digit growth in tax payments from corporations and individuals next year, accounting for more than half of the total collection by the Bureau of Internal Revenue (BIR), data from the Department of Finance (DOF) showed.

In the 2024 proposed national budget submitted to Congress, the DOF has estimated that taxes on net income and profits will amount to P1.552 trillion in 2024, an 11 percent increase compared to the current year's target of P1.398 trillion.

Taxes on net income and profit are projected to make up 50.9 percent of the BIR's full-year target of P3.406 trillion for the upcoming year.

Tax payments from individual income earners, accounting for approximately 25 percent of the BIR target, are expected to increase by 13 percent to P771.16 billion next year from a collection goal of P682.6 billion this year.

Meanwhile, companies, corporations, and enterprises are expected to contribute P604.57 billion in income taxes, reflecting a 9.2 percent growth compared to the current year's goal of P553.7 billion.

Taxes paid by companies, corporations, and enterprises are expected to constitute 19.8 percent of the total collection by the BIR in 2024.

Lastly, other income taxes are projected to rise by 9.6 percent to P176.9 billion from P161.4 billion in 2023.

Taxes on net income and profits are the portion of earnings that individuals or businesses are obligated to give to the government based on the amount they earn or the profit they make.

In 2024, the BIR and Bureau of Customs, the government's two main revenue-generating agencies, are expected to collect P4.05 trillion, higher by 15.19 percent compared to this year's program of P3.51 trillion.

Of that target, the BIR is projected to collect taxes amounting to P3.05 trillion, which is 15.44 percent higher than the current year's goal of P2.64 trillion.

On the other hand, Customs has been assigned the ambitious target of generating over a trillion pesos in revenues for the first time in its history.

The goal of P1 trillion represents a 14.41 percent increase compared to this year's target of P874.17 billion.

The collection targets for both the BIR and Customs include proceeds from proposed tax revenue measures set to take effect from 2024 onwards.

The government plans to implement revenue measures next year such as taxing digital service providers and introducing excise taxes on certain items, which are expected to contribute P120.54 billion.