BIR exceeds H1 2025 collection target by PHP 4.6 billion

The Bureau of Internal Revenue (BIR) has exceeded its tax collection target for the first half of 2025, bolstering government fiscal confidence and placing the agency ahead of pace in meeting its full-year goal.

According to a statement released Friday, the BIR, under Commissioner Romeo D. Lumagui Jr., collected PHP 1.554 trillion (net of tax refund) from January to June 2025, surpassing its first semester target by PHP 4.594 billion.

The January–June total marks a 14.11% increase—or PHP 192.143 billion—compared with the same period in 2024.

For June alone, the agency collected PHP 200.524 billion, beating its monthly target by PHP 5.554 billion, or 2.85%.

The monthly performance also reflects a year-on-year growth of 16.24%, or PHP 28.021 billion, from June 2024.

“With the reforms introduced by the new tax laws, such as VAT on Digital Services, CREATE MORE Act and Capital Markets Promotions Act (CMEPA), we hope to increase the revenue base so we could attain and even surpass our collection target for the year,” Lumagui said in the release.

The midyear collection already represents more than 48% of BIR’s annual goal of PHP 3.232 trillion.

This 2025 target is 13.36%—or PHP 380.871 billion—higher than the agency’s actual full-year collection in 2024.

The CREATE MORE Act (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy), which follows the original CREATE law, aims to broaden tax incentives for investors and support micro, small, and medium enterprises (MSMEs) while maintaining fiscal discipline.

The CMEPA, still under congressional scrutiny, seeks to stimulate capital market activity through favorable tax treatments, while the VAT on digital services implements a level playing field between local and foreign providers.

These measures are part of the Department of Finance’s medium-term fiscal framework, designed to raise revenues for social and infrastructure programs while ensuring long-term debt sustainability.

BIR’s stronger-than-expected performance comes amid rising domestic consumption and improved compliance under digitalized systems, following an agency-wide modernization push over the last two years.

Economic analysts say meeting over 48% of the target by midyear suggests the agency is on track to surpass its annual goal—barring major economic shocks in the second half.

The Bureau of Customs, which also contributes significantly to national revenue, is expected to release its own midyear performance data later this month.