The Market Monitor Minding the Nation's Business
The Bureau of Internal Revenue (BIR) attained a milestone achievement by surpassing the P2.848 trillion Emerging Goal target set by the Development Budget Coordination Committee (DBCC) last March 2024.
Although the numbers are still being finalized, the BIR confirmed that they have definitely reached the Php 2.848 trillion mark for 2024. “The exact figures will be finalized by around mid-February, and by then, the collection figures will only increase past the DBCC target,” said BIR Commissioner Romeo D. Lumagui, Jr.
With the exception of 2020 – when the target was substantially lowered due to the global pandemic – this is the first time in twenty years that the BIR achieved its goal. Moreover, this was accomplished despite the country’s Gross Domestic Product (GDP) growing by a weaker-than-expected 5.2% in the third quarter, slowing from the revised 6.4% growth posted in the second quarter and 6% a year earlier.
“The BIR has collected at least Php 2.848 trillion for 2024, and all credit goes to the hardworking men and women of the agency. Mabuhay po kayong lahat!” Lumagui expressed.
“Our dedication to Good Governance reforms, manifested by our shift to a taxpayer-oriented agency, has increased the voluntary compliance of taxpayers. This goes to show that if government agencies improve their services, processes, and programs, our countrymen will do the right thing and pay their proper share of taxes,,” the Commissioner added.
Since his appointment as BIR Commissioner by President Ferdinand R. Marcos Jr. back in 2022, Lumagui has garnered praise for his hands-on leadership, which has been crucial in strengthening the BIR’s commitment to good governance.
Under his leadership, the BIR achieved several notable milestones, including 100% nationwide ISO certification for various frontline processes, the Civil Service Commission’s Program to Institutionalize Meritocracy and Excellence in Human Resource Management (CSC PRIME-HRM) Maturity Level II Accreditation, and the National Privacy Commission (NPC) Seal of Registration in the previous year.
Lumagui likewise instilled a culture within the BIR that is grounded on four pillars, namely: strong and assertive enforcement activities, excellent taxpayer service, integrity and professionalism within the institution and among its employees, and a robust push for digitalization.
It was also under his term that the BIR finally made a substantial dent in solving the decades-long illegal practice of using “ghost receipts”, or the use of fictitious receipts and invoices to avoid income tax and value added tax (VAT) liabilities.
Lumagui created the Run After Fake Transactions (RAFT) task force, which is the first of its kind in the history of the agency. Apart from this, the Commissioner also leveled the playing field between retail and online stores by implementing a withholding tax system against the latter.
“We are thankful for the guidance and support of President Marcos, Jr., and this inspired us to reciprocate his trust with outstanding performance. We now have a successful and proven template that works,” Lumagui explained. “My hope and prayer is that all the stakeholders – from both the public and private sector – will continue to support the reforms that we have put into place, so that we can continue to surpass our targets in the coming years,” he concluded.