Home Top News BIR sets higher income tax, VAT collection goals for 2024

BIR sets higher income tax, VAT collection goals for 2024

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PHILIPPINE STAR/RUSSELL PALMA

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 P1.65 trillion of the agency’s P3.055-trillion target this year will come from taxes on net income and profits.

This is 25% higher than the P1.32-trillion target it set for this tax type in 2023, and 18% more than the P1.4-trillion actual collection.

The agency is also targeting to collect P599.2 billion in VAT, which is 11% higher than the P538.1-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 P336.1-billion target last year, but 11% higher than the P292.981 billion in actual excise tax collection.

The agency is also targeting to collect P163.2 billion in percentage taxes, up by 31% from its P124.6-billion goal last year.

It is also aiming to raise P229.2 billion in other taxes this year under BIR operations.

Under non-BIR operations, the agency is seeking to raise P72.1 billion from net income and profit taxes and P15.9 billion from other taxes.

By implementing office, the BIR is expected to collect P1.84 trillion through the Large Taxpayer Service.

In 2023, BIR collections rose by 7.76% year on year to P2.52 trillion but fell short of its P2.64-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

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