The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) have both ramped up their respective digitalization and strict enforcement initiatives in 2024, which drove higher tax collections for the year.

“I commend both the BIR and BOC for their accomplishments this year. Their job is definitely not a walk in the park. Dala-dala nila sa kanilang mga balikat ang ekonomiya at kinabukasan ng bansa. At dahil po sa kanilang patuloy pagsisikap, napondohan natin ang mga prayoridad na proyekto at programa ng ating Pangulo para sa mga Pilipino ngayong taon. Rest assured, we are working non-stop to strengthen the efficiency, transparency, and integrity of our tax system to inspire trust and compliance among our taxpayers,” Finance Secretary Ralph G. Recto said.

As of the end of November 2024, total tax collections reached PHP 3.55 trillion, 11.5% higher than the same period last year.

Of which, the BIR’s collection increased by 13.9%, reaching PHP 2.67 trillion for the said period. Meanwhile, the BOC’s collection climbed to PHP 850 billion, 4.7% higher than the previous year.

Emerging total tax collections for the year are expected to reach PHP 3.82 trillion, 11.4% more than in 2023. As a percentage of GDP, this is equivalent to 14.4% from 14.1% the previous year.

The growth in tax collection is higher than the expected growth in nominal GDP for 2024 of 9.1%.

Among key contributors to the higher tax collection outcome is the BIR’s accelerated implementation of its Digital Transformation (DX) Program.

Of the 27 projects under this program, 16 are already completed or in pilot or phased implementation as of the end of November 2024. These projects are intended to provide taxpayers with modern, convenient, and accessible tools, as well as improve the Bureau’s internal processes to ensure efficient public service delivery.

Among the recently completed was the Online Registration and Update System (ORUS), which is a web-based system that provides an end-to-end process for registration and updating of taxpayer registration information.

As of November 2024, the BIR issued 470,387 digital Tax Identification Number (TIN) IDs through the ORUS.

Meanwhile, the completion of the Enhancement of Electronic One-Time Transaction (ONETT) System resulted in the issuance of 33,198 Electronic Certificate Authorizing Registration (eCAR) from January to November 2024. This corresponded to PHP 4.37 billion in collections.

The BIR likewise optimized its knowledge management system for its Chatbot Revie, making it more interactive and responsive to taxpayer queries. Some of the enhancements include integration with online appointment booking, linkage with an online complaint filing facility, and queue management for TIN inquiries.

With the commitment to upgrade the quality of frontline services, the BIR was able to ensure that all of its 23 Revenue Regions (RR), including Large Taxpayers Service (LTS), are International Organization for Standardization (ISO) Certification for Business Registration Process.

On its tax enforcement activities, the Bureau fast-tracked the roll-out of the Run After Fake Transactions (RAFT) drive, which allows it to file civil, criminal, and administrative cases against sellers, users, and professionals involved in the sale and use of commercial invoices/receipts to support fake transactions.

As of October 2024, the BIR has sent out approximately 1,500 assessment notices and was able to collect PHP 3.44 billion.

Meanwhile, through its Run After Tax Evaders (RATE) program, the BIR discourages unscrupulous behavior by emphasizing the criminal nature of tax evasion, encouraging voluntary compliance and public confidence in the tax system.

For the period of January to November 2024, four RATE cases were filed with the Department of Justice (DOJ) with estimated tax liabilities of PHP 564.93 million, and 17 cases were filed with the Court of Tax Appeals (CTA) with an estimated tax liability of PHP 1.21 billion.

With the implementation of the Nationwide Enforcement Operations on the illicit trade of cigarettes, vapes, and other excisable articles, the BIR issued 787 mission orders and collected PHP 110.33 million from January to October 2024.

For its part, the BOC was able to attain a digitalization rate of 97% with the implementation of three new systems in 2024, namely: the Overstaying Cargo Tracking System, the Enhanced e-Travel System, and the ATA Carnet Monitoring.

Meanwhile, 16 Collection Districts, three subports, and five stand-alone BOC offices were awarded ISO 9001:2015 Certification as of the end of November 2024. This reflects the Bureau’s continued adherence to the stringent quality management standards set by the ISO.

The Bureau likewise strengthened its border protection efforts, seizing PHP 84.36 billion worth of smuggled goods as of November 30, 2024. Among the top seized commodities consisted of counterfeit goods, various commodities, cigarettes, e-cigarettes/vape products, vehicles and accessories, and illegal drugs.

Recently, the BOC forfeited 21 containers of seized frozen mackerel worth PHP 178.5 million, which was donated to 150,000 families in marginalized communities to ensure food security for Filipinos.

On December 14, 2024, the President distributed some of the confiscated mackerel to 21,000 households from Barangay 649 in Tondo, Manila right after its inspection.

From January to November 2024, the BOC likewise disposed of a total of 305 overstaying containers. This resulted in revenue generation of PhP 166.301 million from the public auction of 146 containers of assorted goods.

As part of the BOC’s monitoring efforts and post-evaluation of importers and brokers, the Bureau revoked the accreditation of 48 importers and customs brokers.

From January to November 2024, the BOC filed a total of 81 criminal complaints against importers and customers in violation of the provisions stipulated in the Customs Modernization and Tariff Act (CMTA). Of which, the BOC secured seven criminal convictions.

Meanwhile, the BOC successfully collected PHP 220.77 billion in taxes under the Fuel Marking Program, which translated to 18.23 billion liters marked as of November 30, 2024.

To safeguard against abuse of warehousing privileges and prevent potential revenue leakage, the BOC also intensified its inspection of Customs Bonded Warehouses (CBW) and Customs Common Bonded Warehouses (CCBW) and ordered the closure of 14 (CBWs).

Furthermore, a total of 75 scanning machines of various types are now operational in all international airports nationwide, significantly enhancing the Bureau’s detection capabilities and ensuring more efficient and accurate inspections. In addition, 34 scanners were distributed across various seaports.

The BOC has also made progress in strengthening collaboration with industry stakeholders by establishing the Customs Industry Consultative and Advisory Council (CICAC) in February. This serves as a vital bridge between the BOC and the business sector to address all issues related to Customs and industry matters.

As of November 30, 2024, the Central CICAC had grown to 59 member organizations while the district level expanded to 122 members.