December 26, 2024 | 12:00am
MANILA, Philippines — The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) are set to tackle ambitious double-digit revenue growth targets for 2025, Finance Secretary Ralph Recto said.
“(We have) double-digit (growth targets) for both (agencies) next year. Both BIR and BOC (targets) will be challenging,” Recto said, adding that the two government agencies are targeting to grow their revenue collection by around 10 to 11 percent next year.
Based on the Budget of Expenditures and Sources of Financing (BESF), the BIR is targeting to collect P3.23 trillion next year, while the BOC is aiming to collect about P1.06 trillion in revenues in 2025.
Recto said achieving these ambitious goals would require improved efficiency and robust economic growth. Experts said the passage of new tax measures next year could also provide much-needed additional revenue streams.
Data from the Bureau of the Treasury showed that revenue collection stood at P3.8 trillion from January to October this year, 16.8 percent higher than last year’s P3.2 trillion.
During the period, BIR’s overall haul rose by 13.5 percent to P2.42 trillion while the BOC saw its collection inch up by 5.3 percent to P777.6 billion.
The government incurred a budget deficit of P963.9 billion from January to October, 5.3 percent lower than the P1.02 trillion recorded in the same period last year.
Recto said both agencies are expected to meet their official BESF targets this year, with the BIR projected to collect P2.85 trillion and the BOC, P940 billion.
The Development Budget Coordination Committee (DBCC) earlier hiked the revenue goal for 2024 to P4.38 trillion from the P4.27 trillion forecast previously given in July.
Revenue targets were kept at P4.64 trillion in 2025, P5.06 trillion in 2026 and P5.63 trillion in 2027.
By the end of the Marcos administration in 2028, revenues are expected to grow to P6.25 trillion, equivalent to 17 percent of gross domestic product (GDP).
Government spending will also remain one of the major contributors to economic growth. The government raised its expenditure program to P5.91 trillion this year from P5.75 trillion previously.
The DBCC expects spending to remain at an average of about 21 percent of GDP from 2024 until 2028.
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