BIR, Customs targets ‘more or less’ achieved

THE Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) both likely hit their 2024 revenue targets, Finance Secretary Ralph Recto said, but maintaining the momentum this year could be a challenge.

“Let me commend both the BIR and the BOC for more or less hitting their targets last year,” he told reporters last Thursday.

“Moving forward, I expect the BIR also to hit the targets for 2025. The challenge will be a little more for BOC because we increased their target for next year.”

Preliminary figures put 2024 revenues at P4.41 trillion, with taxes accounting for the bulk at P3.78 trillion, while non-tax revenues were at P625.96 billion.

The BIR last week said that it likely topped its P2.85-trillion target with “at least” P2.848 trillion having been collected with final figures still to be determined next month.

The BOC, meanwhile, which has a P930-billion goal, has so far netted P916.6 billion.

While the figures remain preliminary, Recto said that 2025 was a successful year for both agencies as it had resulted in the highest revenue-to-gross domestic ratio in 27 years of 16.5 percent.

“The BIR is growing roughly in double digits, and the BOC is also on track. Both agencies have demonstrated strong performance.”

The government is aiming to hit P4.64 billion in revenues this year, with the BIR tasked to collect P3.2 trillion and the BOC to contribute P1.06 trillion.

“[W]e want them (Customs) to grow double-digit also for next year,” Recto said, adding that “I think that’s where the challenge is.”

“And assuming they have a shortfall … we’re preparing what can we do to ensure that we still collect the revenue so that we don’t increase the deficit,” he added.

This will be by “way of non-tax revenue and other privatization proceeds. So this year for sure we will still adopt the policy of [a] dividend rate of 75 percent [for state-owned firms],” the Finance chief continued.

Recto last year ordered an increase in the mandatory dividend remittances of government-owned and -controlled corporations from 50 percent as a means of increasing revenues without having to raise taxes.

The government, he said last Thursday, is “finding ways to improve our non-tax revenues for 2025.”