THE Bureau of Internal Revenue (BIR) aims to collect P359.6 billion in excise taxes this year.
Excise taxes are imposed on the production, sale, or consumption of alcohol, tobacco, petroleum, minerals, and automobiles, as well as non-essential goods like jewelry. Mandated by the National Internal Revenue Code (NIRC) of 1997, as amended by the Tax Reform for Acceleration and Inclusion (Train) Law of 2018, it applies to locally manufactured and imported items.
Excise taxes are seen to comprise a major part of the BIR’s overall collection program target of P3.431 trillion from the initial P3.58 trillion goal under the Budget of Expenditures and Sources of Financing (BESF).
The agency seeks to collect P21.33 billion from digital services, mining windfall and royalty taxes, corporate tax reforms under Create More, and capital market-related duties.
Under the Revenue Memorandum Order 9-2026, tobacco products will account for the largest share of excise tax collections at P166.6 billion, followed by alcohol products at P132.1 billion.
These sectors are assigned to the Large Taxpayers Service (LTS), the BIR said.
Sweetened beverages are expected to contribute P42.1 billion, while smaller amounts will come from automobiles (P6.543 billion), mining (P10.016 billion) and smaller contributions from cosmetic procedures and miscellaneous items.
The allocation of excise tax targets was based on actual 2025 collections and refined to account for non-recurring transactions and structural adjustments. For instance, certain one-off revenues — such as large asset sales or amnesty collections — were excluded to ensure a more accurate and sustainable baseline for growth.
Non-cash collections and extraordinary transactions were not subjected to standard growth assumptions, ensuring that targets reflect organic revenue potential rather than temporary boosts.
“To clarify, the BESF-based collection goal will remain the official revenue target of the Bureau for compliance with the Attrition Act of 2005 (Republic Act 9335),” BIR Commissioner Charlito Martin Mendoza said.
“The Emerging Collection Goal will serve as the operational benchmark for agency performance measurement, cash management, budget execution, and mandated reporting to stakeholders, unless instructed otherwise by the Development Budget Coordination Committee and the Department of Budget and Management,” Mendoza added.
Under the emerging collection goal, the BIR expects excise tax collections to remain stable at P359.06 billion, nearly unchanged from the BESF level.
