The Bureau of Internal Revenue’s (BIR) tax collections rose by double digits in March, providing a critical fiscal buffer for the Marcos administration as it grapples with persistent energy crisis that threatens to dampen domestic demand.

Preliminary data released by the agency on Wednesday, April 15, showed gross collections climbed 11.87 percent to ₱198.755 billion from the same month in 2025.

The BIR, which accounts for approximately 70 percent of the government’s total tax revenue, credited the expansion to heightened taxpayer compliance and resilient economic activity, even as the country faces significant inflationary headwinds.

The net performance, however, was tempered by a sharp increase in tax refunds. The bureau disbursed ₱11.368 billion in refunds last month, more than five times the amount recorded in March 2025. This aggressive payout narrowed the net collection growth to 6.68 percent, bringing the final monthly take to ₱187.387 billion.

Finance officials said the surge in refunds was a deliberate policy maneuver intended to inject liquidity into the private sector. By accelerating the return of excess taxes, the government seeks to provide businesses with the capital necessary to manage rising operational costs tied to a volatile energy market.

“Our March 2026 collection performance is encouraging, especially at this time of economic strain,” BIR Commissioner Charlito Martin R. Mendoza said in the statement.

He noted that the agency is operating under the directive from President Ferdinand Marcos Jr. and Finance Secretary Frederick Go to balance the need for steady revenue with the delivery of timely fiscal relief to taxpayers.

The March figures serve as a bellwether for the country’s fiscal health ahead of the annual income tax filing season, traditionally the most lucrative period for the Bureau of the Treasury. In a bid to further alleviate financial pressure on households and corporations, Marcos announced on Tuesday that the deadline for filing 2025 annual income tax returns has been extended by one month.

Under Revenue Memorandum Circular No. 30-2026, the deadline moved from April 15 to May 15, 2026. The extension allows taxpayers to settle obligations and submit documentation without incurring interest or penalties.

Economic managers are monitoring the BIR’s performance to see if the government can hit its deficit-to-gross domestic product targets while sustaining a multi-billion peso infrastructure program.

While digitalization and expanded enforcement efforts appear to be yielding results, investors remain cautious over whether this revenue momentum can be sustained if energy costs continue to drive up the broader cost of living.