BIR slashes collection target from large companies

The Bureau of Internal Revenue (BIR) has reduced its collection target from large corporations this year amid expectations of lower excise tax collection.

BIR’s Revenue Memorandum Order No. 27-2023 showed that the collection goal for the Large Taxpayers Services (LTS) has been slightly reduced to P1.599 trillion from the original target of P1.601 trillion released in April.

Large taxpayers consist of the country’s largest corporations as well as multinationals. The LTS serves as the “one-stop shop” catering for the tax affairs of large enterprises.

Despite the target reduction, the LTS’ goal represents the bulk or over 60% of the BIR’s full-year collection goal of P2.639 trillion for 2023.

In a chance interview with reporters on Tuesday, BIR Commissioner Romeo Lumagui Jr. said the adjustment in the collection target of the LTS was due the expected decline in excise taxes.

For this year, the BIR expects to collect P336.09 billion in excise or “sin” taxes, lower from its original projection of P352.8 billion.

“Because nagkaron ng adjustment sa excise tax [goal]. For example, dahil nakikita natin na bumababa ang konsumo ng excisable articles so nung nagkaron ng adjustment diyan sa collection target diyan,” Lumagui said.

(Because there was an adjustment in the excise tax goal. For example, we are seeing that the consumption of excisable articles is going down, so the collection target was adjusted.)

In an earlier interview, the BIR chief had said that the shortfall in excise tax collection stands at 11% to 20% due to illicit trade, especially tobacco products and cigarettes.

The BIR has launched a campaign to combat illicit cigarette trade as the government is losing P50 billion to P100 billion in tax revenues.  —VAL, GMA Integrated News