Despite a recent downward revision in the economic growth outlook, the Department of Finance (DOF) said that the Marcos administration is standing by its tax collection target for the year.
Finance Secretary Ralph G. Recto said that the Bureau of Internal Revenue (BIR) and the Bureau of Customs are maintaining their collection target of 4.05 trillion, even amid a slower gross domestic product (GDP) target.
Recto explained that the Development Budget and Coordination Committee (DBCC) has opted to retain the tax goal, citing the better performance of the two main tax agencies, which appear to be on track to meet their targets.
“No need to revise it yet,” Recto told reporters when asked whether the economic managers have considered adjusting the tax goal following the revision of the 2024 GDP target to a range of 6.0 percent to 7.0 percent from 6.5 percent to 7.5 percent.
The BIR has a target to collect P3.05 trillion this year, while the Customs bureau is expected to generate approximately P1 trillion.
"So far, they're doing pretty well... we're hitting the targets. The revenue growth from last year to this year should be about 14 percent, if I recall correctly, so we're at 17 percent, which is more than enough," Recto said.
"So we hope that this trend continues all the way up to the end of the year," he added.
Meanwhile, the finance chief said he will meet with the heads of the BIR and Customs to discuss their medium-term targets, focusing particularly on the target for this year.
“I will be meeting with them soon to discuss the revenue targets for this year and extending all the way to 2028. However, the most crucial focus is on this year because we are already funding the budget for the current year,” Recto said.
Slower economic growth typically leads to a decline in tax revenue due to lower income and reduced spending by consumers and businesses.