Wazzup Pilipinas!?
The Bureau of Internal Revenue (BIR) has achieved a historic milestone by surpassing its 2024 collection target of Php 2.848 trillion, marking the first time in 20 years that the agency has fully met its collection goals. This accomplishment is a testament to the dedication of BIR personnel and the significant reforms implemented under the leadership of Commissioner Romeo D. Lumagui, Jr.
In a statement released today, Commissioner Lumagui expressed his pride in the agency's success. “After 20 long years, the BIR has finally reached its full collection target. The BIR has collected at least Php 2.848 trillion for 2024. All credit belongs to the men and women of the BIR. Mabuhay po kayong lahat!” Lumagui exclaimed, acknowledging the hard work of BIR staff members.
Although the final figures are still being reconciled, the BIR is confident that they have reached their target, with final confirmation expected by mid-February 2025. The agency anticipates that the numbers will continue to rise as the final data is processed.
A Historic Achievement Built on Reforms
This remarkable achievement is the culmination of years of hard work and reform. Commissioner Lumagui attributes the BIR’s success to the continuous efforts made to improve governance and taxpayer services. Under his leadership, the BIR has undergone a transformation, shifting toward a more taxpayer-oriented agency. This has led to a noticeable increase in voluntary taxpayer compliance.
“The dedication to Good Governance reforms, manifested by our shift to a taxpayer-oriented agency, has increased the voluntary compliance of taxpayers,” Lumagui noted. “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 BIR’s four-pronged approach to governance—fearless and aggressive enforcement, excellent taxpayer service, integrity and professionalism, and digitalization—has proven to be a key driver of this success. By focusing on these pillars, the BIR has been able to modernize and streamline operations, ensuring a more efficient and transparent tax system.
Revolutionizing Tax Enforcement
One of the cornerstones of Lumagui's reforms has been the fight against tax fraud and illegal activities, particularly through the creation of the Run After Fake Transactions (RAFT) task force. This initiative targets the notorious issue of ghost receipts, a major source of tax evasion. The BIR’s enhanced enforcement efforts are designed to crack down on dishonest practices and ensure that all businesses comply with tax regulations.
Additionally, Lumagui’s administration has worked to level the playing field between traditional retail and online stores. The introduction of a withholding tax system for online retailers has helped ensure that e-commerce businesses pay their fair share of taxes, addressing an area that has long been a gray zone for tax authorities.
“The BIR will continue its cooperation with the private sector and its taxpayers. You are our partner in nation-building. Without your support, we could not have reached our Php 2.848 trillion goal. Marami pong salamat sa inyong walang-sawang suporta sa amin,” Lumagui said, emphasizing the importance of collaboration with businesses and citizens.
The Road Ahead: Strengthening Partnerships and Future Goals
While the BIR has reached a significant milestone, Lumagui emphasized that the agency’s work is far from over. As the Philippines continues to recover from the economic downturn caused by the pandemic, the BIR aims to build on this success by further strengthening its relationships with taxpayers and the private sector.
Although the BIR did reach its collection goal in 2020, the target was considerably reduced due to the devastating impact of the COVID-19 pandemic. This makes the full attainment of the Php 2.848 trillion target in 2024 even more remarkable, as it reflects a complete recovery and growth trajectory.
With the foundation of transparency, integrity, and taxpayer engagement now firmly in place, the BIR is poised to continue its upward trajectory in the coming years, contributing significantly to the country’s economic stability and growth.
A Bright Future for the BIR and the Philippines
The 2024 collection achievement not only reflects the BIR's improved efficiency but also highlights the Philippines' growing economic resilience. This success is a significant step forward in the country’s journey toward greater financial stability and prosperity. With the continued leadership of Commissioner Lumagui and the BIR’s ongoing commitment to reform, the future looks bright for both taxpayers and the nation as a whole.
The BIR’s achievement is a testament to what can be accomplished when government agencies prioritize public service, integrity, and collaboration with the private sector. As the BIR moves into 2025, all eyes will be on how it continues to build on this success and work toward even greater financial milestones.
Ross is known as the Pambansang Blogger ng Pilipinas - An Information and Communication Technology (ICT) Professional by profession and a Social Media Evangelist by heart.
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