BIR expects ₱1.84 trillion in taxes from big corporations

The Bureau of Internal Revenue’s (BIR) specialized unit responsible for managing the tax affairs of large corporations in the country is projected to collect ₱1.841 trillion this year.

According to BIR Revenue Memorandum Order (RMO) No. 11-2024, the Large Taxpayers Service (LTS) is tasked with collecting 60.2 percent of the bureau’s full-year target of ₱3.055 trillion.

This year, the LTS aims to surpass its previous year’s target of ₱1.599 trillion by 15 percent.

Issued on March 13, 2024, and signed by BIR Commissioner Romeo D. Lumagui Jr., the RMO outlined that approximately ₱324.56 billion of the total LTS target will be derived from excise taxes.

Sin taxes are expected to contribute ₱268.9 billion to the revenue target for 2024, with ₱152.3 billion originating from tobacco products and the remaining ₱116.5 billion from alcohol.

Furthermore, the BIR expects to collect ₱36.47 billion in excise taxes from sweetened beverages, ₱10.89 billion from mining, and around ₱5.8 billion from automobiles.

Additionally, the bureau forecasts ₱2.33 billion in excise tax revenue from single-use plastics, ₱143 million in miscellaneous excise tax, and ₱9 million each from cosmetic procedures and tobacco inspection fees.

In 2023, the BIR posted a recordbreaking collection of ₱2.5 trillion, but fell short of the target due to adjustments in value-added tax (VAT) filings and deadlines.

Last Jan. 23, Finance Secretary Ralph G. Recto met with the BIR to discuss strategic plans to achieve the Marcos administration’s target of generating ₱4.3 trillion in revenues this year.

Recto told the BIR executives that the Marcos administration is committed to achieving this year’s total revenue collection target, with the majority of the amount expected to come from the bureau.