BoC collects PHP 80.7B in May but misses target by 2.1%

The Bureau of Customs (BoC) collected PHP 80.664 billion in revenues in May but fell short of its target due to lower volumes and the temporary suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene.

In a statement on Monday, the agency said that it missed its collection target of PHP 82.39 billion by PHP 1.726 billion or 2.1% in May.

“This was largely due to reduced import volumes of oil and non-oil commodities, as well as the implementation of Executive Order No. 114, s. 2026, which temporarily suspended excise taxes on selected petroleum products,” it said.

Despite missing its monthly target, the BoC’s collections in May are still up by 6.62% from the PHP 75.657 billion it collected in the same month a year ago.

Elevated oil prices stemming from the Middle East conflict have pushed the government to place the country under a one-year state of national energy emergency in March.

As part of measures to mitigate the impact of oil shocks, the government suspended the excise taxes on kerosene and LPG for a three-month period starting April 17.

Meanwhile, BoC collections in the first five months hit PHP 406.365 billion, surpassing the PHP 397.05-billion target set for the period by 2.3%.

The January-to-May revenue also showed a year-on-year increase of 6.5% from the same period in 2025.

The agency attributed the higher revenues in the five-month period to “improved valuation and enhanced revenue collection measures which helped offset the impact of lower import volumes during the period.” 

The BoC said that it plans to sustain the momentum “through enhanced trade facilitation, digital transformation initiatives, strengthened border control measures, and continued efforts to improve operational efficiency.”

Customs collections in the five months ending May already represented 40.5% of the PHP 1.003-trillion target set for the year.

However, BoC Commissioner Ariel F. Nepomuceno said last week that the Development Budget Coordination Committee (DBCC) raised the agency’s revenue target by PHP 7 billion for 2026.

The DBCC is yet to release its revised macroeconomic assumptions reflecting the weaker-than-expected 2.8% gross domestic product (GDP) growth in the first quarter.

“We think the BoC’s collection target is still somewhat attainable despite the May miss,” University of Asia and the Pacific economist Marco Antonio C. Agonia told BusinessWorld, noting that the surplus accumulated in the first five months provides the agency with some buffer to meet its goal.

“Import volumes may recover in the second half of the year when government spending and some better growth conditions set in,” he added.

Mr. Agonia also said that the significant progress towards the signing of a peace deal in the Middle East within the year could boost import demand and, in turn, Customs revenues.

“For now, we continue to monitor economic confidence indicators to gauge import purchasing interest, particularly for consumer and intermediate goods,” he added.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said that although the full-year revenue target remains achievable, “the cushion is getting thinner.”

“I wouldn’t revise targets just yet. Import flows are inherently volatile, and we typically see a pickup in the second half driven by seasonal demand and infrastructure activity,” he said, adding that any recovery is likely to be gradual.

“Bottom line: this isn’t a revenue problem yet — it’s a momentum issue. If imports stabilize by midyear, they stay on track; if not, expect a near-miss rather than a significant shortfall,” he added. — Justine Irish D. Tabile, Senior Reporter