The Bureau of Internal Revenue (BIR) collected approximately ₱358 billion in January, a marginal increase from the ₱355.1 billion recorded in the same month last year, as the agency bets on steady economic expansion to meet its annual targets.

The preliminary figures, which BIR Commissioner Charlito Mendoza noted are still subject to final reconciliation, represent about 10 percent of the bureau's ₱3.58 trillion revenue goal for 2026.

Speaking to reporters during a tax awareness campaign on Monday, Feb. 23, Mendoza expressed confidence that the government’s growth trajectory would provide the necessary tailwinds for the country’s primary tax-collecting arm.

The bureau is banking on the projected gross domestic product (GDP) expansion of five percent to six percent this year to bolster its balance sheet.

According to Mendoza, such growth typically translates into higher yields from value-added tax (VAT), excise taxes, and income tax collections.

He also pointed to the government’s infrastructure agenda as a secondary catalyst, suggesting that accelerating public works projects will inherently increase the volume of revenue the BIR can capture.

“Hopefully, this year, the government’s infrastructure projects will also accelerate, and that will help increase the revenue that the BIR is collecting,” the chief taxman said.

Mendoza’s remarks coincided with an inspection of business stalls in the Divisoria commercial district, part of a nationwide initiative dubbed “Counsel, Help, Assist Taxpayers” or CHAT. The campaign marked a pivot for an agency often criticized for aggressive auditing practices.

By focusing on micro, small, and medium enterprises, the BIR is shifting toward what it describes as a people-centered approach. The objective is to move away from traditional demands and toward dialogue, checking essential compliance markers such as certificates of registration and sales invoices while educating business owners on their obligations.

The shift in tone follows a period of internal scrutiny regarding tax audit abuses. The agency stated Monday that the initiative is intended to reduce the “fear” often associated with tax enforcement and expand the tax base through voluntary compliance.

By bringing previously unregistered activities into the formal economy and ensuring the issuance of sales invoices, the bureau expects to capture a larger share of economic activity that previously went untaxed.

“[This campaign will improve collections] because once taxpayers become compliant, especially those with previously unregistered activities, they are brought into the tax base,” Mendoza explained.

The push for easier compliance comes after the BIR collected ₱3.11 trillion in 2025, narrowly exceeding a downscaled target of ₱3.10 trillion. That performance was achieved despite a two-month suspension of tax audits, a move that placed significant pressure on the bureau's remaining collection windows.

Mendoza noted that the current strategy is designed to make compliance easier for honest taxpayers while making violations more difficult through a combination of digital coordination and accountable enforcement.