Despite hitting its first-half collection target of ₱1.5 trillion and even modestly exceeding it, the Bureau of Internal Revenue (BIR) hinted at the possibility of downscaling its full-year ₱3.2 trillion target, as the country’s main tax collection agency may fall short of it.

“I think there might be a recalibration of the goal, again, considering that the assumption is not going to happen. So if we use the formula for arriving at the right collection target, it should be recalibrated,” BIR Commissioner Romeo Lumagui Jr. said in an interview with Bilyonaryo News on Thursday, July 17.

While there is still no final decision, possible adjustments could occur around the third quarter, Lumagui said.

During the interview, Lumagui also reported that the BIR had successfully reached its ₱1.5-trillion revenue collection goal for the first six months of 2025, driven by intensified efforts to improve the country’s tax collection performance.

“We’re proud to say that we have achieved that P1.5 trillion [collection target] for the first half of the year. So the BIR is really doing well for the first semester,” Lumagui said, noting that the agency slightly exceeded the first-half target by half a percent or about P7.5 billion.

According to the BIR chief, hitting the revenue target means “the BIR is right on track, that we’re going the right path, and what we’re doing is good. We just have to continue and improve on certain things.”

During the period, Lumagui stated that the arts, entertainment, and recreation sector experienced strong growth compared to the previous year. This expansion was accompanied by an increase in administrative and support services, resulting in a rise in collections.

In terms of actual value, the manufacturing and the information and communication sector recorded the biggest gains. Lumagui also noted that household employment activities doubled year on year.

“So we’ve seen an increase by more than 80 percent tax collection from [the] taxpayer segment,” Lumagui further noted. Small taxpayers or those earning between ₱3 million and ₱20 million.

Moving forward, Lumagui asserted that the agency only has to sustain the momentum of its “good performance.”

“We just have to maintain what we're doing, be aggressive on the tax enforcement, go really hard on those evading taxes, and help the taxpayers to comply,” he said. To improve compliance, the agency plans to extend operating hours if needed, similar to what it did during the estate tax amnesty deadline.

Last month, the Cabinet-level Development Budget Coordination Committee (DBCC) lowered the national revenue target to ₱4.52 trillion from ₱4.64 trillion previously. Consequently, the BIR’s revenue target was reduced slightly to ₱3.22 trillion from ₱3.23 trillion.

This revision coincided with a downward adjustment of the country’s gross domestic product (GDP) growth target to 5.5 percent to 6.5 percent, from the previously more ambitious 6 percent to 6.5 percent.