BIR sets higher income tax, VAT collection goals for 2024

The Bureau of Internal Revenue (BIR) is aiming to increase income tax and value-added tax (VAT) collections this year amid the government’s efforts to improve tax administration and efficiency.

Data from the BIR showed that more than half or PHP 1.65 trillion of the agency’s PHP 3.055-trillion target this year will come from taxes on net income and profits.

This is 25% higher than the PHP 1.32-trillion target it set for this tax type in 2023, and 18% more than the PHP 1.4-trillion actual collection.

The agency is also targeting to collect PHP 599.2 billion in VAT, which is 11% higher than the PHP 538.1-billion goal for 2023.

Meanwhile, excise tax collections are also expected to reach P326.2 billion this year. This is 2.9% lower than the PHP 336.1-billion target last year, but 11% higher than the PHP 292.981 billion in actual excise tax collection.

The agency is also targeting to collect PHP 163.2 billion in percentage taxes, up by 31% from its PHP 124.6-billion goal last year.

It is also aiming to raise PHP 229.2 billion in other taxes this year under BIR operations.

Under non-BIR operations, the agency is seeking to raise PHP 72.1 billion from net income and profit taxes and PHP 15.9 billion from other taxes.

By implementing office, the BIR is expected to collect PHP 1.84 trillion through the Large Taxpayer Service.

In 2023, BIR collections rose by 7.76% year on year to PHP 2.52 trillion but fell short of its PHP 2.64-trillion target. This was primarily attributed to the change in the schedule of VAT return filings from monthly to quarterly.

The agency collects about 70% of government revenue. — Luisa Maria Jacinta C. Jocson