BIR targets major service upgrade with ₱18-billion budget bid for 2026
By Derco Rosal
Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. said the government’s main tax agency’s ₱18 billion proposal for 2026 covers plans to build a tax-focused contact center and office space expansion to accommodate more taxpayers and reduce queues.
“We want to improve our facilities and we want to improve our digital transformation because it will greatly increase our efficiency in tax collections,” Romeo said during a Kapihan sa Manila Bay press briefing on Wednesday, June 18.
He said the agency has proposed a budget of about ₱15 billion to ₱18 billion, rising from ₱16.9 billion this year.
“Hopefully this time, the budget I requested for the contact center will be granted—because last year, it was not given to us,” Lumagui said, adding that the estimated annual budget to fund the contact center will be around ₱150 million.
“It’s like a call center—toll-free nationwide, that’s the goal. Especially in the provinces, imagine people traveling for several hours just to ask simple questions to the BIR, when it could easily be handled over the phone,” Lumagui explained.
He added that the contact center is “centralized. It’s a small investment, but the improvement in services would be significant and truly felt by taxpayers.”
Aside from the usual programs, Lumagui said the agency is also prioritizing infrastructure projects, as some of its offices are still renting small, cramped spaces.
“Imagine, some of our offices are just big enough for the employees, so taxpayers end up lining up outside. That’s why we want to move to a place that can accommodate more taxpayers inside, more conveniently,” he said.
Also, the BIR is pushing to equip all district offices with e-lounges, requesting additional computers so each lounge can have at least four to five units available for taxpayers.
According to the Department of Budget and Management (DBM), agency budget proposals for 2026 have already ballooned to around ₱11 trillion as of May, surpassing this year’s ₱9.2-trillion worth of funding requests.
This was attributed to numerous programs and projects (PAPs) being eagerly pushed by agencies. As such, the 2026 budget proposal is expected to exceed 2025’s ₱6.326-trillion appropriations and reach a new record high.
Given the country’s “limited fiscal space,” new budget proposals are being evaluated based on their alignment with the Marcos administration’s priorities, readiness for implementation, and the absorptive capacity of implementing agencies.
BIR’s proposed contact center and office expansion fall under infrastructure development, which is the Marcos administration’s first priority in the list, as per the 2026 budget priorities framework briefer published early June.
Infrastructure development specifically includes investments in active transport, integrated water resources, agriculture and healthcare facilities, and digital connectivity.