By Benjamin Cuaresma
MANILA, Philippines — The Bureau of Internal Revenue (BIR) on Thursday declared its readiness to implement President Ferdinand R. Marcos Jr.’s proposed tax reform agenda, assuring taxpayers that the agency is prepared to carry out new measures aimed at easing the tax burden while strengthening revenue collection once Congress enacts the necessary legislation.
BIR Commissioner Charlito Mendoza said the bureau fully supports the administration’s push for tax reforms outlined by the President during his fifth State of the Nation Address (SONA), describing the proposals as measures that seek to balance taxpayer relief with the government’s need to sustain funding for essential public services.
Among the key proposals are the expansion of income tax exemptions and the removal of the minimum corporate income tax for qualified small businesses—initiatives intended to stimulate economic activity, encourage entrepreneurship, and provide greater financial relief to individuals and micro, small and medium enterprises (MSMEs).
“The BIR supports this direction and stands ready to faithfully and efficiently implement the measures that Congress may enact,” Mendoza said.
He emphasized that while lawmakers deliberate on the proposed reforms, the bureau is already laying the groundwork to ensure a smooth and efficient rollout once the measures become law.
“Our responsibility now is to ensure that the Bureau is fully prepared once these measures are signed into law, while sustaining our ongoing initiatives to strengthen tax administration and enhance taxpayer experience,” he added.
Mendoza said the BIR will continue pursuing reforms that fall within its existing authority, including improving tax compliance programs, modernizing digital systems, streamlining procedures, and reviewing outdated regulations that no longer address the needs of taxpayers.
He also underscored the importance of maintaining close coordination with businesses, taxpayers and other stakeholders to ensure that future tax policies are practical, responsive and easier to comply with.
According to Mendoza, these parallel reforms are expected to improve voluntary tax compliance while making revenue collection more efficient without placing unnecessary burdens on taxpayers.
“Through these efforts, we will help ensure that tax relief measures are implemented efficiently, encourage greater voluntary compliance, and continue generating the revenues needed to fund essential public services,” he said.
The BIR’s commitment comes as the Marcos administration pushes for a new wave of fiscal reforms designed to promote economic growth, improve tax equity, and maintain a sustainable revenue base to finance the government’s priority programs and infrastructure investments.
ia/xf
