The Bureau of Internal Revenue (BIR) is ramping up its value-added tax (VAT) collection efforts this year after falling short of its 2025 target, according to a report by Philstar Biz. The agency is preparing a tougher campaign to bridge the revenue gap as economic headwinds persist.
The shortfall in 2025 was driven by slower economic growth, weaker household consumption, and volatile oil prices, which are expected to continue weighing on VAT revenues this year. The BIR is tightening enforcement measures and enhancing taxpayer compliance programs to improve collection efficiency.
The agency's stepped-up campaign targets both large and medium-sized enterprises, aiming to close compliance gaps and reduce tax evasion. Industry observers note that sustained revenue growth is critical for the government's fiscal plans amid a challenging economic outlook.