Manila: Bureau of Internal Revenue (BIR) Commissioner Charlito Martin Mendoza announced that the agency is on track to achieve its revenue collection target for the year, thanks to several initiatives aimed at enhancing taxpayer compliance.
According to Philippines News Agency, Mendoza revealed during a briefing that the total collections for the first half of the year have reached PHP1.6 trillion, marking an increase of over 5 percent compared to the PHP1.55 trillion collected during the same period last year. Mendoza expressed confidence in meeting the Development Budget Coordination Committee's (DBCC) goal of PHP3.393 trillion, emphasizing the continuation of current efforts.
The BIR has introduced various reforms to improve tax compliance. In June, a revenue regulation was issued allowing micro taxpayers to participate in a one-time abatement program, effective from July 7. This program targets micro taxpayers with gross sales not exceeding PHP3 million and total basic tax liabilities and/or penalties not exceeding PHP80,000 for a taxable year. Mendoza noted significant participation from micro taxpayers in this initiative, aligning with the President's program goals.
Additionally, the BIR launched a taxpayer portal in May to modernize tax administration and facilitate business operations. This portal enables taxpayers to access registration details, monitor tax return statuses, track payments, and receive automated reminders, reducing the need for manual follow-ups and in-person visits to BIR offices. Although the initial implementation covers those registered under the Large Taxpayers Service (LTS), the system's expansion to other taxpayers is slated to begin next month.
Mendoza highlighted that the 3,300 taxpayers under the LTS account for over 60 percent of the BIR's total collections. The BIR plans to extend the portal's services to other large, medium, and eventually individual taxpayers, aiming for comprehensive coverage of business taxpayers.
In addition to simplifying tax processes, Mendoza emphasized the importance of training BIR employees to enhance service quality. The goal is to make tax compliance straightforward and voluntary for taxpayers by streamlining processes and continuing digitalization efforts.
Mendoza also addressed the BIR's enforcement actions against tax evasion, mentioning that cases have been filed against 14 contractors related to the flood control issue. Moreover, the BIR is prepared to implement President Ferdinand R. Marcos Jr.'s tax reform agenda, which includes income tax exemptions and relieving small businesses from the minimum corporate income tax. Mendoza reiterated the President's message of supporting micro and small taxpayers to aid the country's growth.
