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Philippine infrastructure spending fell for a third straight month in September, as public works projects continued to undergo tight scrutiny amid a corruption scandal, the Department of Budget and Management (DBM) said.

In its latest disbursement report on Sunday, the DBM said expenditures on infrastructure and other capital outlays declined by 42.6% to PHP 78.7 billion in September from PHP 137.1 billion in the same month last year.

Month on month, it slipped by 7.2% from PHP 84.9 billion in August. This marked the third consecutive decline in infrastructure spending since the 31.6% contraction in July.

“The spending performance of the Department of Public Works and Highways (DPWH) continued to register negative growth rate for the third straight month since July 2025,” the DBM said.

President Ferdinand R. Marcos, Jr. had flagged anomalous flood control projects during his State of the Nation Address in late July. This sparked several investigations into alleged corruption involving lawmakers, government officials, and private contractors.

The DBM attributed the sharp drop in infrastructure spending in September to the delays or non-submission of billings by contractors as the DPWH offices reviewed the implementation and completion of projects around the country. This affected the processing of payment claims and actual disbursements by the DPWH, it added.

“Heightened scrutiny from oversight agencies, such as the Office of the Ombudsman, the Commission on Audit, the Bureau of Internal Revenue, and the Department of Budget and Management, (which) resulted in more conservative and cautious processing of payment claims,” it said.

The DBM said there was also a freeze order on some bank accounts of DPWH implementing offices, which were under investigation.

Bad weather in September also hampered the implementation of projects, it added.

“Nevertheless, payments for the local counterpart of foreign-assisted projects of the Department of Transportation and the RAFPMP (Revised Armed Forces of the Philippines Modernization Program) of the DND (Department of National Defense) partially tempered the decline in infrastructure disbursements,” the Budget department said.

Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said in a Viber message that “tighter ropes on public spending” may have contributed to the drop in infrastructure spending in September.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the sharp year-on-year decline in infrastructure spending to the government’s implementation of anti-corruption measures amid the anomalous flood control projects.

“Some of the funding for which (were) redeployed to other social spending such as for the Department of Social Welfare and Development (DSWD), Department of Agriculture among others,” he said in a Viber message.

Mr. Ricafort also noted weather-related disruptions, such as typhoons and earthquakes, reduced the number of business days in September.

Nine-month period

For the January-to-September period, the overall infrastructure and capital outlay disbursements stood at PHP 877.1 billion, down 10.7% from PHP 982.4 billion a year ago. This accounted for 87.4% of the PHP 1.0036‑trillion full‑year program.

“(This) was largely due to the lower spending performance of the DPWH. This followed the stricter validation of the status of implementation, quality, and completion of infrastructure projects nationwide amid corruption issues,” the DBM said.

In the third quarter alone, disbursements fell by 30.7% to PHP 256.9 billion from PHP 370.6 billion in the same period in 2024. This was PHP 125.7 billion lower than the PHP 382.6‑billion program for the July-to-September period.

Data from the DBM showed overall infrastructure disbursements, which include infrastructure components of subsidy and equity to government corporations and transfers to local government units, slipped by 8.6% to PHP 1.04 trillion in the end-September period from PHP 1.14 billion a year ago.

The Budget department said the drop in DPWH disbursements shaved off 1.3 percentage points in the third‑quarter 2025 gross domestic product (GDP) growth.

The Philippine economy grew by 4% in the third quarter, the slowest growth seen in over four years or since the first quarter of 2021.

This brought the nine-month tally to 5%, falling short of the government’s 5.5% to 6.5% target.

Economic managers have insisted the spending slump will likely be temporary as reforms and investigations are underway.

However, analysts have warned the drag on economic growth could persist until 2026 unless the government pushes for governance reforms and those behind anomalous flood mitigation projects are jailed.

Mr. Erece said spending may remain subdued in the near future.

“It is difficult to say whether an improvement can be expected next year given the decline in public trust and slow approval of next year’s budget as they closely scrutinize every allocation, especially on infrastructure,” he said.

During plenary debates on the 2026 budget, Senator Sherwin T. Gatchalian said infrastructure spending is expected to reach just 4.7% of GDP in 2026, down from the government’s 5.1% target amid a corruption probe.

Mr. Ricafort said the recovery in infrastructure spending would depend on governance reforms.

“Kung walang risk of corruption, tuloy ang infrastructure spending (If there is no risk of corruption, infrastructure spending will continue),” he said.

Meanwhile, the DBM said capital outlays are expected to partly normalize toward yearend as most public works resume.

“Capital expenditures are expected to partly normalize towards the end of the year with the implementation of most public works by the DPWH will resume before the year ends as governance measures and safeguards against corruption are put in place,” it said.

DPWH Secretary Vivencio “Vince” B. Dizon lifted on Sept. 16 the suspension of procurement for locally funded civil works, as the agency laid out stricter compliance rules.

These include livestreaming of bidding, geotagging of projects, and conduct of road and bridge information application validation.

Other measures cover encoding and verification of project data in the Project and Contract Management Application and Civil Works Application, a ban on contract splitting, and tighter reviews of bidders’ financial capacity under procurement law.

The DBM earlier said the government is banking on the release of PHP 1.307 trillion in programmed spending in the fourth quarter to boost growth, with most funds earmarked for social services. — Aubrey Rose A. Inosante

Finance Secretary Frederick D. Go said that setting a “realistic” revenue collection target is important, as revenue collection targets are at risk amid a corruption probe that has dampened economic growth.

In a Facebook post on Saturday, the Department of Finance (DoF) said Mr. Go “emphasized the importance of setting realistic revenue targets, noting that necessary budget adjustments need to be made.”

As of end-September, revenue collections climbed by 2.24% to PHP 3.367 trillion, equivalent to 74.49% of the government’s PHP 4.52-trillion full-year goal.

In 2026, the government is targeting to collect PHP 4.98 trillion in revenues.

At a meeting with National Treasurer Sharon P. Almanza, Mr. Go discussed the Treasury’s efforts to maintain a sustainable debt profile.

He said that “corrective actions must be taken to address current fiscal challenges and strengthen the government’s overall fiscal challenges.”

The Philippine sovereign debt stood at PHP 17.46 trillion at the end of September, still above the projected year-end debt level of PHP 17.36 trillion this year.

“I want to hear your team’s recommendations on key areas where we can optimize spending, because that’s often where discussions stall. We need to finalize the plan and determine the necessary adjustments,” he was quoted as saying to Ms. Almanza during the meeting.

Mr. Go also expressed full confidence in the Bureau of the Treasury’s expertise in identifying areas where savings can be achieved.

Executive Secretary and former Finance chief Ralph G. Recto earlier said the Development Budget Coordination Committee is likely to review its macroeconomic targets and assumptions in December.

This comes as the Bureau of Internal Revenue and Bureau of Customs are likely to miss their targets amid weak economic growth, lower remittances from the Department of Public Works and Highways and slower global trade that curbed imports.

In a separate statement, the Finance department said Mr. Go met with Finance Undersecretary Euvimil Nina R. Asuncion, head of the Revenue Operations Group, to map out the revenue office’s goals in modernizing revenue administration.

During the meeting, the Finance chief stressed the need for digitalization and urged the team to pursue “small wins” that deliver quick, visible gains for taxpayers.

He also raised prospects for government-to-government assistance, including potential technology transfers from countries such as Japan, to fast-track reforms.

Mr. Go pledged close coordination with the group, backing its push to “foster a culture where taxpayers willingly fulfill their obligations.”

The Finance chief also sat down with World Bank officials to align government priorities and continue partnership through financing, technical support, and disaster-risk solutions.

He showed his appreciation for the lender’s financing support through the Disaster Risk Management and Climate Development Policy Loan with a Catastrophe-Deferred Drawdown Option, which the government can readily access in times of disaster.

The Philippines is preparing to withdraw USD 500 million (PHP 29.27 billion) under this facility to support financing requirements for the immediate response and recovery following recent typhoons that hit the country, the DoF said.

He also met British Ambassador to the Philippines Sarah Hulton OBE to deepen Philippines-UK ties, with talks centering on the Luzon Economic Corridor, development cooperation, and trade and investment opportunities. — A.R.A.Inosante

The Philippines’ balance of payments (BoP) position swung to a surplus in October, narrowing the country’s external position gap in the 10-month period, the central bank said.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that the country’s BoP registered a surplus of USD 706 million in October, a turnaround from the USD 724-million deficit seen a year ago.

This was also wider than the USD 82-million surfeit in September and marked the third consecutive month that the BoP stood at a surplus.

“The Philippines’ balance of payments registered a USD 706-million surplus in October 2025, reflecting improved external accounts,” the BSP said in a statement released late on Wednesday.

BoP refers to the country’s economic transactions with other nations. A surplus indicates more funds entered into the country, while a deficit shows that the country spent more than it received.

The BoP surplus in October brought the country’s 10-month deficit to USD 4.609 billion, a reversal from the USD 4.393-billion surplus in the same period last year.

“For January-to-October 2025, the BoP recorded an overall deficit of USD 4.6 billion, showing signs of narrowing as inflows strengthened,” the central bank said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted that the BoP surplus in October was the best in eight months or since February 2025.

In a note, Mr. Ricafort attributed this to improved weather conditions and the expected tail-end of the seasonal rise in imports in the third quarter.

He said the seasonal increase in remittances and export sales would be positive factors for the country’s BoP position in the fourth quarter.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said in a Viber message that increased inflows from exports, remittances and the business process outsourcing sector likely boosted the country’s BoP surplus.

“If global conditions stabilize and imports normalize, we could see the BoP deficit narrow further by yearend,” he added. “But watch out for (US Federal Reserve) policy and oil prices — they’re still key risks.”

Mr. Ricafort also said US President Donald J. Trump’s recent move to exempt some agricultural products from reciprocal tariffs would also help improve the country’s balance of trade and external position.

“For the coming months, BoP data would improve further if anti-corruption measures and other reform measures, especially in further leveling up the country’s governance standards, are taken seriously, just like 10-15 years ago, as these help further improve international investor sentiment or confidence (in) the country,” he added.

The central bank expects the overall BoP position to end at a USD 6.9-billion deficit this year or -1.4% of gross domestic product.

Dollar reserves

Meanwhile, the BSP said the country’s latest BoP position reflected the 1% increase in gross international reserves (GIR) at USD 110.2 billion at end-October from USD 109.1 billion at end-September.

“The rise in reserves to USD 110.2 (billion) gives us a solid buffer against external shocks,” Mr. Tacandong said.

In the 10-month period, the level of dollar reserves was equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income, well above the three-month standard.

“Specifically, the latest GIR level ensures availability of foreign exchange to meet balance of payments financing needs, such as for payment of imports and debt service, in extreme conditions when there are no export earnings or foreign loans,” the central bank said.

It also covers around 3.8 times the country’s short-term external debt based on residual maturity.

The country’s gross reserves are made up of foreign-denominated securities, foreign exchange, and other assets such as gold. Aside from financing its external obligations, these are used by the central bank to help stabilize the peso and also serve as a buffer against global economic disruptions.

The BSP sees dollar reserves settling at USD 105 billion by yearend. — Katherine K. Chan

 

The Department of Finance (DoF) expressed “strong reservations” regarding a proposal to lower the value-added tax (VAT) rate, warning it could cost the government more than PHP 1 trillion in foregone revenues through 2030 and undermine its fiscal consolidation efforts.

In a position paper submitted to the House of Representatives dated Oct. 22, the DoF said House Bill (HB) No. 4302, which proposes to cut the VAT rate to 10% from the current 12%, would lead to substantial revenue losses over the next five years.

A copy of the position paper, which was signed by then-Finance Secretary Ralph G. Recto, was obtained by BusinessWorld on Thursday.

“The estimated impact of the proposed VAT rate reduction is at an annual average of PHP 339 billion from 2026 to 2030… This proposal will translate to a higher fiscal deficit and derail the administration’s fiscal consolidation efforts and plan,” the DoF said.

“Introducing this proposal at this time would risk fiscal stability, equity and growth.”

Based on DoF estimates, the revenue impact of the proposed VAT rate reduction would reach a total of PHP 1.694 trillion from 2026 to 2030. This includes PHP 1.11 trillion in foregone revenues for the Bureau of Internal Revenue and PHP 583.6 billion for the Bureau of Customs.

The DoF said reducing the VAT rate to 10% will increase the deficit by one percentage point of gross domestic product annually.

“The proposal will result in credit rating downgrades, which in turn increase our borrowing costs due to higher interest rates,” it said.

The proposed measure will also compromise debt sustainability, the DoF said.

“Lowering the VAT rate and losing a steady stream of government revenues of around PHP 339 billion yearly would significantly slow down the pace of reduction in the debt ratio planned by the government, leaving the country more vulnerable to fiscal shocks,” it said.

The Philippines has imposed VAT on most goods and services since 1988, including essentials such as food and fuel. Raised to 12% from 10% in 2005, it has become a key revenue source, though critics have argued it disproportionately burdens working-class Filipinos.

The DoF said VAT is an important revenue source for the government, accounting for around 26.5% of total tax take and 29.9% of government revenues.

“VAT, as a consumption tax, grows in tandem with the economy, making it one of the most predictable sources of government revenue and, at the same time, one of the most difficult to evade,” the DoF said.

Batangas Rep. Leandro Antonio L. Leviste filed HB No. 4302 in September seeking to lower the VAT rate, arguing the current tax system is “regressive” and should be reduced to make taxation more progressive.

The DoF said the current VAT system is “relatively neutral and slightly progressive” as most of the goods and services purchased and consumed by poorer households are already not subject to VAT.

“The proposed reduction of VAT will benefit higher-income households who have a larger share in formal consumption,” it said, explaining that lower‑income families tend to have only “small shares” of spending subject to the tax. “The richer households will substantially benefit more than the poorer households.”

While the Philippines has the highest VAT rate in Southeast Asia, the DoF said that a reduction in the rate will not automatically make the VAT system more competitive. It noted the Philippines has the lowest VAT efficiency in the region as it provides a significant number of VAT zero-ratings or exemptions to some sectors.

The DoF said the bill is not an “anti-inflation tool” and won’t automatically lower consumer prices.

It also noted that the bill’s provision giving the President the authority to temporarily return the VAT rate to 12% will disrupt the National Government’s fiscal program.

“The proposal will erode revenue stability and predictability… Making (the VAT) rate dependent on the yearly deficit projection of the Development Budget Coordination Committee would mean uncertainty for revenue and cash programming, budget planning and investors’ decisions,” it said.

“The proposed VAT rate increase based on the deficit target breach would also mean business and consumers facing unpredictable tax burdens, higher compliance costs and deterring long-term investments,” it added.  — Kenneth Christiane L. Basilio, Reporter

The Philippine government has collected almost PHP 7 billion from a 12% value-added tax (VAT) on digital services, the Department of Finance said, providing a lift to revenue intake at a time when slower growth and a corruption probe are weighing on collections.

The Bureau of Internal Revenue (BIR) has raised PHP 6.57 billion since the digital VAT took effect in June, based on a document obtained by BusinessWorld.

Of the total, the BIR collected PHP 2.78 billion from nonresident digital service providers as of Oct. 23. 

Meanwhile, final withholding VAT from business-to-business transactions reached PHP 3.79 billion as of Sept. 25 — almost entirely from foreign platforms — with PHP 3.77 billion remitted by private withholding agents and PHP 5.85 million by government agencies,

Under the law, a 12% VAT is now imposed on nonresident digital platforms such as Netflix, Spotify, Amazon and Lazada.

“It likely reflects higher digital consumption in e-commerce, streaming, and online services, improved compliance from platforms now formally registered with the BIR, and tighter monitoring of cross-border service providers,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said in a Viber message.

Mr. Rivera noted the tax haul shows the digital economy is becoming a meaningful source of government revenue and is now being treated on par with traditional industries.

“The shift toward cashless payments and online transactions also made digital activity more traceable,” he said.

Former BIR Commissioner Romeo D. Lumagui, Jr. earlier projected the agency will collect PHP 10 billion in VAT from digital services this year, well above the initial PHP 3.62‑billion target.

For 2026, the Marcos administration seeks to collect a PHP 21.37-billion revenue from digital VAT. It is targeting PHP 22.81 billion in digital VAT collection in 2027 and PHP 23.41 billion in 2028.

Analysts said the BIR is on track to reach PHP 10‑billion digital VAT target this year, buoyed by rising technology spending and increasing compliance by nonresident platforms.

Eleanor L. Roque, a tax principal of P&A Grant Thornton, said the BIR has already collected PHP 6.57 billion in the early stages, making the PHP 10-billion target “easily achievable.”

“I think there are still nonresident digital service providers who are still going through the compliance process. There are companies that are still waiting for some clarification on whether they are covered,” she said in a Viber message to BusinessWorld on Thursday.   

Ms. Roque noted that initial “birth pains” such as VAT portal delays were quickly addressed by the agency.

“The digital economy may post slower income growth as a result of taxes they paid for the government. However, the industry is still poised for large growth due to higher activity and spending on technology,” Reinielle Matt M. Erece of Oikonomia Advisory and Research, Inc. said in a Viber message.

Mr. Rivera also added that hitting the PHP 10‑billion goal is “still possible.”

“Strong holiday e-commerce activity could lift collections, but hitting the target will depend on sustained platform compliance and continued digital spending despite recent economic headwinds,” he said. — Aubrey Rose A. Inosante, Reporter

Global trade has “responded well” to Washington’s broader relaxation of tariffs, though uncertainty still hangs over the outlook as Manila continues to negotiate the lowering of the 19% reciprocal duty on its exports, the Department of Economy, Planning, and Development (DEPDev) said.

“I think that the global trade in many countries has responded well to the improvement,” DEPDev Secretary Arsenio M. Balisacan told reporters on the sidelines of a Senate hearing on Nov. 18.

“But still, it does not mean that uncertainty has disappeared. It’s still out there.”

The Philippines continues to press for a lower reciprocal tariff even after most of its agricultural exports were exempted under US President Donald J. Trump’s latest executive order, Mr. Balisacan said.

Other goods from the Philippines are still slapped with a 19% reciprocal tariff when they enter the US. However, Mr. Trump’s latest executive order exempted hundreds of agricultural products from the reciprocal tariffs starting Nov. 13.

The Department of Trade and Industry earlier said the latest order meant that over USD 1 billion worth of Philippine agricultural exports are now exempted from the 19% US reciprocal tariff.

Key agricultural exports exempted from the reciprocal tariff include coconut (copra) oil, both crude and other than crude; fruit juices; processed pineapples; desiccated coconuts; prepared or preserved coconuts; bananas, other than pulp; dried guavas, mangoes, and mangosteens; frozen tuna fillets; rice wafer products; and confectionery products.

Mr. Balisacan said the tariff exemption will boost productivity of coconut farmers, as well as strengthen their export capacity. 

Executive Secretary and former Finance chief Ralph G. Recto said the tariff exemptions mark a positive step for Philippine exports and agriculture, adding they could help drive economic growth.

“It’s positive for us. I think President Trump realized that imposing tariffs on agriculture is inflationary, so he removed them. That’s good for us,” he said on the sidelines of a Senate hearing on Nov. 18.

‘Export more’

Meanwhile, the Department of Agriculture (DA) is ready to support Philippine farmers in expanding their exports to the US.

“The path is clear. Now people can plan, invest, and expand. So, that’s good. As far as the DA is concerned, we have to start planting more… so that we can export more to the US,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters on the sidelines of the 3^rd Philippine Hydro Summit on Wednesday.

Mr. Laurel said the US order has helped calm the anxiety of Philippine exporters of coconuts, bananas and pineapples.

The Agriculture chief said that the 19% US reciprocal tariff, which was implemented starting August, had earlier created uncertainty for the industry.

“But now, everything is clear… The President’s directive was to support all of our export products. And that will be our banner programs for next year,” Mr. Laurel said.

The Philippine Exporters Confederation, Inc. (Philexport) said the exemption of Philippine exports such as coconuts, pineapples, bananas, and mangoes from the 19% US reciprocal tariffs is expected to “improve demand, stabilize prices, and directly benefit exporters, farmers, and rural communities across the Philippines.”

“This is a positive outcome of our sustained collaboration and engagements with key stakeholders and partners to convey the need for certain exemptions and maintain the competitiveness of Philippine exports, especially those products not locally produced in the US,” Sergio R. Ortiz-Luis, Jr., Philexport president and chief executive officer, said.

Philippine Chamber of Commerce and Industry President Enunina V. Mangio said the exemptions provide “much-needed relief to exporters, help safeguard jobs, and strengthen the competitiveness of Philippine products.”

For his part, University of Asia and the Pacific Associate Professor George N. Manzano said the Philippines should continue negotiations with the US for a lower reciprocal tariff.

“However, we are still not better off compared to the period before President Trump introduced those reciprocal tariffs. So, the Philippines should continue negotiating for a reduction of the 19% reciprocal tariff,” he said in a Viber message.

Mr. Manzano noted that the removal of reciprocal tariff does not mean Philippine exports are duty-free, as the original Most Favored Nation tariff will still be applied.

If the US extends the tariff rollback to all trading partners, the Philippines’ relative competitiveness would remain unchanged, he added.

“This US tariff exemption is a game-changer for Philippine exporters. Over USD 1 billion worth of goods — led by coconuts, coffee, cocoa, and processed fruits  —will now enter the US duty-free,” Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said in a Viber message to BusinessWorld on Wednesday.

He also said the tariff break may offer a chance to scale up value‑added products of farmers and agri‑businesses.

“My advice? Move fast, ensure quality, and lock in supply reliability — this window won’t stay open forever,” he said.

For his part, Foundation for Economic Freedom President Calixto V. Chikiamco said the exemption is “self‑serving,” and would favor the US more than the Philippines.

“It’s meant to lower food prices in the US since affordability has become a hot political issue,” he said in a Viber message on Wednesday.

Meanwhile, Ivan Tan, director and lead analyst for Southeast Asia at S&P Global Ratings, said while the tariff exemption is “good,” the Philippines will unlikely see a significant impact as goods remain a small component of the country’s exports.

“I think the impact will be quite mild,” he said in a webinar on Wednesday. “To start with, the dependence of the Philippines’ economy on export… is low. It’s quite small.”

S&P Global has said the US tariff policies could pose downside risks to economies and financial markets in the Asia-Pacific region.

“There is a high degree of unpredictability around US policy implementation and possible responses — specifically about tariffs — and the potential effect on economies, supply chains, and credit conditions,” it said in its recent Global Banks Outlook 2026 report. — Aubrey Rose A. Inosante, Sheldeen Joy Talavera and Katherine K. Chan

The Bureau of Customs (BoC) is holding the line on its PHP 958.7-billion revenue goal for 2025 despite a sharp drop in imports and fewer working days in October that slowed collections, a stance that keeps pressure on the agency as the government grapples with weaker fiscal inflows.

Customs Commissioner Ariel F. Nepomuceno said the bureau is not giving up on the full-year target even after the total volume of imports fell by 3% or about P80 billion last month, denting duties and taxes.

“I don’t want to give up because we’re already at 98% efficiency,” he told reporters on the sidelines of a Senate plenary debate on the 2026 budget on Nov. 17. “We can still do it if we can in November [and] December.”

The BoC collects taxes and duties from all goods imported to the Philippines.

The Department of Finance earlier warned that Customs, one of the country’s revenue-generating agencies, may miss its full-year targets this year amid slower global trade due to US President Donald J. Trump’s tariff policies.

“We could have hit the target this October if there had been one more working day. Compared to last year, there were more working days… due to the storms,” he said.

The Philippines was battered by back‑to‑back storms, including typhoons Tino and Uwan, which shut businesses, ravaged cities and forced class suspensions in October.

The latest data from the Treasury showed that Customs revenue collection inched up by 1.59% to PHP 701.7 billion in the first nine months, accounting for 73.12% of the full-year target.

Customs has yet to release a breakdown of its October collections.

Despite this, Mr. Nepomuceno said Customs is banking on petroleum imports to help offset weaker revenues as the extension of the rice import ban and slower trade weigh on collections.

“But we’re trying to check if there are other sources that can compensate (for the slower revenues). Like petroleum products, probably we can generate more revenues from that, given that the ban for rice importation has been extended,” he said.

Mr. Nepomuceno warned that foregone revenues from the rice import freeze, expected to last until mid-January, could reach over PHP 6 billion.

He also noted that Customs seized PHP 3.6 billion worth of smuggled goods between July and September.

“The new team accounted for about 50% of total apprehensions in just 90 days. So, there is a sense of hope that we can improve further until we fully digitalize,” he said.

Customs earlier reported the BoC is also looking to enter into a public and private partnership to fully digitalize its operations.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the BoC can still meet its PHP 958.7‑billion revenue goal for 2025 if import volumes rebound.

“Imports could increase as more exporting countries diversify exports away from the US and more for countries like the Philippines amid Trump’s higher tariffs, trade wars, and protectionist policies,” he said in a Viber message. — Aubrey Rose A. Inosante, Reporter