BIR Breaks 20-Year Drought, Hits 2024 Collection Target of Php 2.848 Trillion

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.

US Vice President Kamala Harris Reaffirms Strong Support for the Philippines Amid Escalating South China Sea Tensions

Wazzup Pilipinas!?

On January 14, 2025, in a critical phone call between US Vice President Kamala Harris and Philippine President Ferdinand R. Marcos Jr., Harris reaffirmed the United States' steadfast commitment to supporting the Philippines, particularly as tensions rise over China’s increasing aggression in the West Philippine Sea. This conversation, which highlights the enduring strength of the US-Philippines alliance, underscores the shared goal of maintaining peace, stability, and prosperity in the Indo-Pacific region amidst growing regional challenges.

Strengthening the US-Philippines Partnership

Vice President Harris emphasized the importance of reaffirming the United States’ commitment to defending the Philippines, especially in the South China Sea. Reflecting on her historic visit to the Philippines in November 2022, particularly her visit to Palawan, Harris underscored the vulnerability of the region and the critical need for a robust defense partnership. She also highlighted the strong bipartisan support for the US-Philippines alliance in the United States, not just in terms of security but also in areas of economic growth and people-to-people relations.

"This is extremely important to me and to the United States that we reaffirm our commitment to the defense of the Philippines, including the South China Sea," Harris said, reinforcing the enduring strength of this crucial alliance. She acknowledged the collaborative efforts that have solidified the US-Philippines relationship and emphasized the shared values that continue to guide the partnership.

The Philippines' Strong Stance on Regional Security

In his response, President Marcos expressed deep gratitude for the unwavering support from Vice President Harris and the United States. He highlighted the tremendous progress the two countries have made over recent years, particularly in strengthening their bilateral relations to address modern security challenges, including tensions in the South China Sea.

"It is remarkable how much work we have done and how much it has developed our relationship, evolving to meet the modern challenges we face both in the South China Sea and globally," said President Marcos, recognizing the US’s pivotal role in strengthening the Philippines' security and sovereignty. He also noted the transformative impact of the trilateral defense agreement between the US, Japan, and the Philippines, which has altered the regional dynamic, particularly concerning the South China Sea and broader Indo-Pacific security.

President Marcos also emphasized the importance of the growing cooperation between the Philippines, the US, and Japan. This trilateral alliance has gained recognition within ASEAN, reinforcing the collective regional position on pressing security issues, especially those concerning the West Philippine Sea. "The strengthened relationship between our countries has become a strong foundation for ongoing collaboration in defense, diplomacy, and security," Marcos stated.

Trilateral Cooperation to Confront Regional Challenges

The reaffirmation of US-Philippine defense commitments comes at a time of heightened tensions in the South China Sea. On January 13, 2025, US President Joe Biden, Japanese Prime Minister Ishiba Shigeru, and President Marcos held a trilateral virtual meeting. The leaders discussed regional maritime security, economic cooperation, and China’s "dangerous and unlawful behavior" in the South China Sea. The leaders also underscored the importance of maintaining a free and open Indo-Pacific, stressing the need to uphold international law and promote stability in the region.

"This trilateral partnership is more important than ever as we face rising tensions and increasing provocations from China," President Marcos remarked following the meeting. The leaders agreed to continue deepening their cooperation to address security threats and ensure the protection of sovereignty in the region.

China’s Increasing Aggression in the South China Sea

China’s aggressive actions in the South China Sea have been a point of contention, with reports highlighting Beijing’s assertive moves in disputed territories. One of the most concerning developments has been China’s increased presence near the disputed Scarborough Shoal, with a large Chinese coast guard vessel patrolling the area, coming dangerously close to the Philippine coast. Philippine officials have condemned these actions, calling them a clear violation of the Philippines' exclusive economic zone (EEZ). China, however, has defended its activities as lawful, further complicating the situation.

The Philippines has continued to challenge China’s unlawful claims in the South China Sea, with President Marcos reiterating the country’s stance against Beijing’s excessive territorial claims. "China must cease its unlawful activities in the South China Sea, as they threaten regional security and undermine international law," Marcos stated in response to these growing provocations.

A Strong and Enduring Alliance

The US-Philippines alliance is founded on decades of diplomatic, defense, and economic cooperation. As the Philippines’ oldest and only treaty ally, the United States remains a key partner in bolstering the country’s defense and security capabilities. Bilateral defense agreements such as the Mutual Defense Treaty (MDT), the Visiting Forces Agreement (VFA), and the Enhanced Defense Cooperation Agreement (EDCA) continue to serve as critical pillars in the bilateral relationship.

Economically, the United States is a major trade partner of the Philippines, ranking as the third-largest trading partner in 2023 with bilateral trade valued at US$19.96 billion. The strength of this economic relationship, combined with ongoing defense cooperation, solidifies the US-Philippines alliance as a cornerstone for regional stability.

Looking Ahead: A Unified Approach to Regional Challenges

As tensions in the South China Sea continue to rise, the US and the Philippines remain resolute in their commitment to addressing regional security challenges. The enhanced trilateral cooperation with Japan, alongside a steadfast partnership with the United States, positions the Philippines to face these challenges head-on.

The enduring alliance between the US and the Philippines is critical not only for defending territorial integrity but also for ensuring a peaceful and prosperous Indo-Pacific. As the two nations continue to work together, their shared values and commitment to international law will remain central in navigating the complexities of regional security. The US-Philippines partnership is poised to grow even stronger as both countries stand united in confronting the rising threats in the South China Sea and beyond.

In closing, President Marcos extended an invitation to Vice President Harris to visit the Philippines again, building on their ongoing discussions and the strengthening of their bilateral relationship. The US-Philippines alliance remains a vital force for peace and security in the Indo-Pacific, with both nations committed to ensuring a stable and prosperous future for the region.

Navigating the Philippine Market: A Comprehensive Guide to Rising Prices and Consumer Experiences

Wazzup Pilipinas!?

The heart of any economy can be found in its markets, where the daily rhythm of buying, selling, and haggling reflects both local and global economic trends. In the Philippines, the traditional palengke (market) is not just a place for fresh produce and daily essentials; it also serves as a mirror to the rising costs that affect every Filipino household. From tilapia to saging (bananas), and even buko (young coconut), the prices in the market are rising, and consumers are feeling the pinch.

The Rising Cost of Living: Inflation's Impact on the Filipino Consumer

As of December 2024, the Philippines recorded an annual inflation rate of 2.9%, surpassing earlier forecasts and continuing the trend of higher-than-expected price increases. This uptick, driven mainly by higher food and utility prices, has resulted in noticeable shifts in consumer behavior. The average inflation rate for 2024 stood at 3.2%, within the Bangko Sentral ng Pilipinas (BSP) target range of 2%-4%, but with lingering concerns over affordability.

The latest data highlights a 2.8% increase in core inflation (excluding volatile items like food and energy) from the previous month, signaling persistent price pressures. In response, the BSP has been adjusting interest rates, cutting the key policy rate by 25 basis points in January to 5.75%. The goal is to keep inflation in check while encouraging economic growth. But will it be enough to curb rising food prices? The answer remains to be seen.

Consumers are particularly concerned about the higher costs of basic food items. Vegetables, meats, and fish have all seen sharp increases in price, making it harder for families to stick to their budget.

What Are Filipinos Buying? Personal Accounts from the Market

A quick look at recent market shopping experiences reveals how much more consumers are spending to fill their baskets. One shopper shared their recent grocery haul, with prices like:

Tilapia: ₱180 per kilo (bought 3 pieces for ₱158)

Salmon: ₱260 per kilo (bought 1 head for ₱140)

Carrots, broccoli, and mung beans: ₱110 for all

Coconut milk: ₱25

Sweet potato (camote): ₱30 per half kilo

Corn: ₱15 each (bought 2 pieces for ₱30)

Moringa (malunggay): ₱5

Bananas (saging): ₱106

Young coconut (buko): ₱35

These prices illustrate the pressures Filipino families face when planning meals. With inflation pushing food costs higher, each trip to the market becomes more of a challenge, especially for those on fixed or limited incomes.

But these price increases are not just the result of domestic economic factors. According to experts, weather conditions, transportation costs, and the global rise in fuel prices also play a significant role in the escalating prices of everyday goods.

The Changing Face of Grocery Shopping: Convenience vs. Tradition

As the cost of living rises, so too does the search for alternative shopping options. Filipinos are increasingly turning to digital platforms, where they can compare prices across different sellers and have their goods delivered straight to their doorsteps. Online shopping has become a popular choice, with delivery services gaining momentum as people look for convenience in their busy lives.

However, despite the digital shift, traditional brick-and-mortar markets remain highly relevant. For many Filipinos, the local palengke is more than just a place to buy groceries; it is a part of their cultural fabric. The tactile experience of hand-picking fresh produce, the lively banter between vendors and customers, and the sense of community that permeates these markets cannot be easily replicated by an online experience. Many still prefer the familiar surroundings of their local market, where they can inspect goods firsthand and haggle for better deals.

Government Actions to Address Rising Prices

In response to rising inflation, the government has put measures in place to mitigate the effects on consumers. One such move is the importation of essential goods like rice and sugar, intended to stabilize supply and reduce price volatility. However, the effectiveness of these measures is often questioned, as they have not been able to fully offset the price hikes experienced by consumers.

Moreover, local government units (LGUs) are working with the Department of Agriculture to ensure the stability of prices in public markets by regulating middlemen and ensuring fair trade practices. But, as with many government initiatives, the impact on everyday shoppers can take time to materialize.

The Gen Z Shift: More Value-Conscious Shoppers

One emerging trend in the Philippines is the increasing influence of Generation Z consumers. This group of young, tech-savvy shoppers is more likely to seek out the best deals, comparing prices online before heading out to the market. They also tend to favor value over brand loyalty, a shift that could potentially disrupt long-standing consumer habits.

As Gen Z continues to grow as a key demographic, their purchasing power will likely shape the future of grocery shopping in the Philippines. Whether through online shopping or the adoption of digital tools to navigate the market, this generation is more focused on getting the best value for their money.

Looking Ahead: What Does the Future Hold?

As 2025 approaches, the future of the Philippine economy and its markets remains uncertain. While inflation rates are projected to stabilize, rising fuel costs, extreme weather events, and ongoing global supply chain disruptions continue to threaten the affordability of basic goods. As families struggle to stretch their budgets, it’s clear that finding ways to make the most out of each trip to the market has become a crucial part of daily life.

For consumers, staying informed and flexible is key. Whether opting for online shopping, exploring alternative markets, or adjusting meal plans, it’s important to adapt to these changes while keeping an eye on both the short-term and long-term economic outlook. The government’s role in stabilizing food prices will also be critical in ensuring that basic necessities remain accessible to all.

Conclusion: The Market’s Pulse

The Philippine market is not just about buying goods—it's a reflection of the economic challenges and opportunities shaping the nation’s future. As inflation continues to push prices higher, consumers are adapting, finding new ways to shop while also trying to maintain the cultural traditions of supporting local markets. Government actions, along with the changing habits of younger shoppers, will play a significant role in how the market evolves in the coming years.

Despite the challenges, Filipinos remain resilient, adapting to the economic pressures while continuing to fight for fair prices and value for money. As always, the market will continue to evolve, but its role as a place of connection and exchange remains as vital as ever.