Baguio city: The Bureau of Internal Revenue (BIR) Cordillera Administrative Region (CAR) said it is confident of better revenue collection for this year, with the remittances of taxes from projects implemented in 2025.
According to Philippines News Agency, BIR-CAR Director Joseph Catapia stated that the Department of Public Works and Highways (DPWH) is expected to release its PHP7 billion contract budget in the first quarter of 2025, enabling the agency to withhold approximately PHP490 million in income and value-added taxes. The BIR-CAR is maintaining communication with the DPWH for tax remittances, which is anticipated to enhance the region's tax collection efficiency.
Based on BIR-CAR records, the region faced a collection shortfall of up to PHP1.114 billion in 2025. Director Catapia also highlighted the CHAT program, initiated in February, aimed at providing counselling, help, and assistance to taxpayers through friendly visits from personnel. Violations such as non-registration and non-maintenance of books were identified, which would typically result in penalties. However, under the CHAT program, businesses received guidance on compliance and correction of violations.
During the one-week implementation of the CHAT program in the Cordillera, 13,580 establishments were inspected. Baguio City led with 5,471 visits, followed by La Trinidad, Benguet with 3,295; Abra with 1,456; Lagawe, Ifugao with 1,440; Tabuk City, Kalinga with 1,386; and Bontoc, Mountain Province with 822. Among these, 2,640 were flagged as unregistered businesses. By March 16, 1,056 of these had complied, integrating into the tax system and contributing to tax payments.
Director Catapia emphasized the preference for increasing the 97 percent voluntary compliance rate over conducting audit investigations. Educating taxpayers on processes often leads to correction of violations. Efforts are also being made to ensure compliance among online businesses, which is expected to improve tax collection, ultimately funding government programs and projects.
