Diokno calls on BIR to beat collection target

The Department of Finance (DOF) is urging the Bureau of Internal Revenue (BIR) to not only meet but surpass its record collection target for this year in order to provide additional funding for the priority programs and projects of the Marcos administration.

In a statement released on Tuesday, Jan. 9, Finance Secretary Benjamin E. Diokno challenged the BIR, an agency responsible for generating two-thirds of government revenues annually, to exceed its 2024 collection target of P3.046 trillion.

The BIR's collection goal for 2024 is 15 percent higher than last year's target of P2.639 trillion.

As of November, the BIR has collected P2.34 trillion, surpassing the previous year's revenue haul of P2.16 trillion by 8.6 percent.

In order to meet the full-year target last year, the bureau needed to generate P300 billion in December.

“I commend the BIR for consistently delivering higher revenues for the country, which are much-needed to support the Marcos, Jr. administration’s priority programs and projects,” Diokno said. 

“We have much to accomplish in 2024. Thus, I urge the agency to not just meet, but exceed its collection targets this year and beyond,” he added.

Diokno attributed last year's enhanced collection performance to intensified programs and initiatives aimed at promoting taxpayer compliance, along with the ongoing implementation of tax enforcement activities.

Launched in March 2023, the BIR’s Run After Fake Transactions (RAFT) program was able to file cases versus four ghost corporations with estimated tax liabilities of P25.5 billion; and three  Corporate Buyers and their Officers, Accounting Firms, and Certified Public Accountants (CPAs) with total estimated tax liabilities of P17.9 billion.

Moreover, 15 criminal cases against buyers and sellers of ghost receipts were filed and legal proceedings against a total of 69 respondents at the Department of Justice (DOJ) have commenced, covering estimated tax liabilities totaling P1.8 billion.

The bureau’s strict nationwide enforcement operations on the illicit trade of cigarettes, vape, and other excisable articles as well as sweetened beverages, perfumes, and toilet water also led to increased tax collections.

From January to December 2023, the BIR collected a total of P137.18 million and issued 1,096 mission orders.

To promote taxpayer compliance and confidence in the tax system, the BIR’s  Run After Tax Evaders (RATE) Program filed a total of 221 cases before the DOJ with estimated tax liabilities of P13.24 billion from January to November 2023.

Meanwhile, 38 cases with an estimated tax liability of P5.06 billion were filed with the Court of Tax Appeals (CTA) during the said period.

From January to November, the BIR was also able to collect P410.94 million and issue 186 closure orders for businesses found to violate essential value-added tax (VAT) requirements through its Oplan Kandado Program.

Meanwhile, taxpayers who filed their taxes electronically versus manually comprised 69 percent of total filers as of November 2023, reflecting a breakthrough in the BIR's continuous efforts to make tax compliance more convenient and accessible for all.

Apart from these efforts, the BIR has ramped up its Digital Transformation (DX) Program to convert the Bureau into a data-driven organization by utilizing reliable, scalable, and robust digital technologies that elevate taxpayer experience.

Some projects under the DX Program are the Online Registration and Update System (ORUS), Project 230X, Online Tax Clearance, Electronic Invoicing/ Receipting and Sales Reporting System (EIS), Enhancement of One-Time Transaction (ONETT) System, Optimized Chatbot Revie, Enhanced Digital Queueing System, and E-Appointment services.