The Bureau of Internal Revenue (BIR) has exceeded its revenue collection target for the first half of 2025, a reflection of the agency’s momentum amid a trimmed full-year goal prompted by slower-than-expected economic growth.
In a recent television interview, BIR Commissioner Romeo Lumagui Jr. said “we’re proud to say that we have achieved that 1.5 trillion [target] for the first half of the year. So the BIR is really doing well for the first semester.”
A key highlight for the agency is the surge in contributions from small taxpayers—those earning gross revenues between ₱3 million and ₱20 million annually.
The ₱1.5 trillion collected is 0.5% higher than the first-half target, the result of the BIR’s continued drive to boost compliance and widen the tax base.
According to Lumagui, this accomplishment “says that the BIR is right on track, that we’re going the right path and what we’re doing is good. We just have to continue and improve on a lot of certain things.”
The BIR chief noted that growth has been particularly notable in specific sectors.
“For the sectors, we have in terms of growth rate, the percentage, we’re looking at the arts, entertainment, and recreation. [They’re] doing well in terms of percentage increase compared with the performance last year. We’re also looking at administrative and support services. It also is performing well for this year in terms of percentage increase in collections,” he said.
Lumagui added that household employment activities saw tax collections double year-on-year, while “in terms of absolute numbers we’ve seen a huge increase in manufacturing and the information and communication industry.”
“The BIR is right on track, that we’re going the right path and what we’re doing is good.”
A key highlight for the agency is the surge in contributions from small taxpayers—those earning gross revenues between ₱3 million and ₱20 million annually. “We’ve seen increase in by more than 80% tax collection from this taxpayer segment,” Lumagui explained, a promising sign of broadening tax compliance across different income brackets.
The BIR’s first-half performance comes as the Development Budget Coordination Committee (DBCC) revised the 2025 fiscal program in light of a moderated economic outlook. The DBCC lowered the national revenue target to ₱4.520 trillion from ₱4.644 trillion, with the BIR’s collection goal adjusted slightly to ₱3.219 trillion from ₱3.232 trillion. GDP growth is now projected at 5.5% to 6.5%, down from the initial 6.5% to 7.5% range.
Lumagui acknowledged that another recalibration could be possible. “I think there might be a recalibration of the goal again considering that the assumption is not going to happen. But there’s no final figure yet.”
