The Bureau of Internal Revenue (BIR) reported preliminary collections of P358 billion in January, signaling confidence in its 2026 revenue targets as the economy shows signs of recovery. BIR Commissioner Charlito Martin R. Mendoza confirmed the figure to reporters, stating it represents a 0.82% year-on-year increase.

Mendoza said the projected 5-6% gross domestic product (GDP) growth for 2026 will translate into higher value-added, excise, and income tax collections. Last year, GDP growth slowed to 4.4%, down from 5.7% in 2024, marking the weakest reading in five years. Excluding pandemic years, it was the weakest since 2011.

The BIR has been set a 2026 collection target of P3.58 trillion. If achieved, this would exceed the 2025 total by 15.3%. Mendoza emphasized that digitalization and real-time monitoring will help minimize revenue leakages.

“And then, hopefully this year, infrastructure projects will accelerate, and that will help increase revenue,” Mendoza said during a visit to 168 Mall in Binondo, Manila.

The BIR launched a nationwide tax compliance verification drive as part of Tax Awareness Month. Mendoza highlighted the CHAT (Counsel, Help, Assist Taxpayers) program, which aims to boost compliance by registering unregistered taxpayers and capturing their sales through issued invoices.

“If our taxpayers are compliant and if they are not registered, and we register them, then they will be part of the tax base,” he said.

During the visit, Mendoza noted that some establishments were non-compliant. He reminded them that sales invoices must be issued regardless of customer requests and that lumped journal entries should be recorded individually after each sale.

The Federation of Filipino Chinese Chamber of Commerce and Industry, Inc. (FFCCCII) welcomed the information campaign. President Victor Y. Lim said the visit was a “very friendly” initiative that would be beneficial for the country.

“I think most of us are complying with the payment of the right taxes,” Lim added. He encouraged FFCCCII members and other ethnic Chinese businessmen to continue paying the correct amount of taxes.

Mendoza also noted that the reduced frequency of letters of authority (LoAs) issued to initiate tax audits has been beneficial to businessmen. Previously, two or three LoAs were issued annually, but now only one is issued per year.