Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. confirmed that the agency’s current collection target of ₱3.2 trillion may be revised due to the country’s slower-than-expected gross domestic product (GDP) growth.

“If you follow the GDP growth, there should be a recalibration of the collection target,” Lumagui said during the Kapihan sa Manila Bay press briefing on Wednesday, June 18.

Talks regarding the collection targets of the country’s biggest tax collection agencies—BIR and Bureau of Customs (BOC)—are ongoing. Lumagui said these actions are being made because revenue targets are “dependent on the economic growth of the country.”

Last month, the Philippine Statistics Authority (PSA) reported that the country’s economic output expanded modestly by 5.4 percent in the first quarter of 2025, outpacing the 5.3 percent growth in the previous quarter.

This growth was almost stagnant and markedly slower than the 5.7 percent growth seen in the first quarter of 2024. It also fell significantly short of the government’s target of six to eight percent.

Lumagui said that a revision of the collection target is “possible given the actual GDP growth.” The Washington-based World Bank recently maintained its forecast that the Philippine economy this year will only grow around the midpoint of five percent and six percent.

“So we are discussing what the appropriate collection target for the BIR should be, but as of now, it’s still at ₱3.2 trillion — nothing has changed yet,” Lumagui said.

He said that the BIR “has been working double-time in making sure that our revenue collection target will be met this year,” adding that the agency is “right on track in achieving our target.”

He, however, noted that the country’s economic growth is “not going as projected.” Thus, raising the likelihood of revising the agency’s full-year revenue target.

For the January-to-April period, the BIR, the country’s largest tax collection agency, collected a cumulative total of ₱1.11 trillion, 34.4 percent of its 2025 target. It accounted for 77.6 percent of the government’s total tax revenues for the four months.

Meanwhile, the BOC, the country’s second-largest tax collection agency, raked in a total of ₱306.1 billion during the period. It now accounts for 28.9 percent of the ₱1.06 trillion target for the year. It accounted for over 21.4 percent of the government’s total tax revenues.

To recall, the BIR exceeded its collection target in 2024, posting a 20-year-high. Lumagui had said that the agency will mark another record for 2025.

Meanwhile, the BOC fell short of its 2024 goal, blaming the recent rice tariffs reduction and delayed tax reforms.