The Bureau of Internal Revenue (BIR), the government’s main tax agency, fell short of its tax collection target for the first half of the year, data released by the Department of Finance (DOF) revealed.
A report on the DOF’s official Facebook page showed that the BIR, responsible for generating nearly 70 percent of the government's yearly income, amassed P1.36 trillion from January to June 2024.
According to the DOF, the preliminary figure represented an 11.7 percent increase compared to the same period last year when collections were at P1.219 trillion.
However, despite the double-digit growth, the BIR's collection for the first six months missed the target set by the Development Budget Coordination Committee (DBCC) by three percent.
The DBCC, an inter-agency body responsible for setting the government's macroeconomic assumptions, had programmed revenue of P1.403 trillion from the BIR in the first half of 2024.
In contrast, the Bureau of Customs exceeded the DBCC's target by three percent, achieving a collection of P455.8 billion compared to the goal of P442.62 billion from January to June.
When compared to the previous year, Customs collections increased by five percent to P433.4 billion in the first half of the year.
In total, the collections from both the BIR and Customs amounted to P1.815 trillion during the January to June period, slightly below the DBCC's target of P1.845 trillion.
Last week, Finance Secretary Ralph G. Recto met with BIR Commissioner Romeo D. Lumagui Jr. and Customs Commissioner Bienvenido Y. Rubio to discuss strategies for enhancing their digital initiatives in order to achieve this year's revenue target.
In May, the DBCC adjusted downward the projected tax collections for the BIR and Customs due to the country's expected slower growth this year.
Based on the DBCC's 2024 Quarterly Fiscal Program approved last May 23, the BIR and Customs are now expected to collect P3.788 trillion this year, a 5.6 percent decrease from the original target of P4.014 trillion.
The DBCC adjusted the BIR's full-year collection target down by 6.7 percent to P2.848 trillion from the earlier goal of P3.055 trillion.
The Customs bureau's target for the year was also lowered by two percent to P939.7 billion from the previous estimate of P959 billion.
Budget Secretary Amenah f Pangandaman, who chairs the DBCC, explained to Manila Bulletin that the reduction in the tax collection target stemmed from a lower-than-expected economic growth outlook, among other contributing factors.
Back in April, the DBCC revised the gross domestic product target for 2024 to a range of 6.0 percent to 7.0 percent from the previous 6.5 percent to 7.5 percent.
The DBCC said the adjusted targets were based on an analysis of the country's economic performance in 2023 along with the latest developments and forecasts regarding external factors such as global demand, trade trends, fluctuations in oil prices, and expected movements in exchange rates and inflation.