HITTING this year’s revenue target will be difficult but attainable, Bureau of Internal Revenue (BIR) Commissioner Charlito Martin Mendoza said, as the agency banks on digital reforms, economic growth and tougher enforcement to raise collections despite tighter fiscal assumptions.
“[I]t will be very challenging, definitely,” Mendoza told reporters on Friday as the agency kicked off its tax campaign for 2026. “But we will do our best to meet that.”
The BIR has been tasked to collect P3.579 trillion this year under the Budget of Expenditures and Sources of Financing, 11.18-percent higher than last year’s goal of P3.219 trillion.
The agency missed that target, collecting just P3.105 trillion in revenues last year, but Mendoza said that it had exceeded the emerging collection target — an operational benchmark separate from the official goal — of P3.101 trillion.
To help achieve this year’s collection target, Mendoza said that economic growth, targeted at 5.0-6.0 percent for 2026 — would boost revenues from income, value-added and excise taxes.
Since the 12-percent value-added tax (VAT) on digital services took effect last July, the BIR chief said that they had collected about P8 billion as of the end of 2025, higher than the expected P7.25 billion based on 50-percent compliance.
The government expects to collect P94.87 billion from VAT on digital service providers from 2026 to 2029.
Mendoza said the agency was also pushing for real-time or near real-time monitoring systems to reduce leakages and improve compliance.
Filing and payment processes are being simplified, existing revenue issuances are being reviewed and revenue systems are being integrated to make compliance easier for taxpayers, he added.
At the same time, the BIR is also working on improving procedures for businesses looking to wind down operations as the ease of doing business should also mean ease of exit, Mendoza said.
