BIR: Govt Loses Over ₱500 Billion Due to Tax Evasion

According to the Bureau of Internal Revenue (BIR), the government loses over ₱500 billion each year due to tax evasion.

When asked about tax evasion revenue losses, BIR Commissioner Romeo D. Lumagui, Jr. said that “There is a lot, especially if we include those involved in illicit trade. In cigarettes alone, there’s around P100 billion,”

“Leakages aren’t part of that yet, like petroleum or vape products that aren’t registered, as well as fake receipts. I think it won’t go below P500 billion if you add everything up,”

This month, the BIR lodged over 74 tax evasion complaints estimated at around ₱3.5 billion against various companies.

“We will tailor efforts to improve digital services so businesses will leave the shadow economy and join the tax net. We will now focus on enforcement activities against tax evaders, put emphasis on tapping uncollected taxes through illegal activities,”  said Lumagui.

The BIR is probing and monitoring a number of suspected tax invaders.

Lumagui mentions that “The most important right now is the selling of fake receipts and we know who (they are). We are investigating so we can file a case against those involved,”

Last year, the BIR collected a total of over ₱2.34 trillion, going above their target of ₱2.1 trillion. Lumagui also mentioned that the BIR is set to collect revenue worth over ₱2.6 trillion this 2023.

“With all our activities and efforts we are making, we will be able to achieve the tax collection target,”  he says.

Source: Business World