REVENUES to be collected by the government are seen to reach P5.205 trillion in 2027 amid expectations of a recovery in economic growth, weighed down by the flood control corruption scandal and the Middle East crisis.
Next year’s revenue goal is equivalent to 15.7 percent of gross domestic product (GDP) and is higher by 8.28 percent than this year’s reduced target of P4.807 trillion, based on the Budget of Expenditures and Sources of Financing for 2027 released on Tuesday.
Of the projected amount, P4.851 trillion will come from tax revenues, up by 9.21 percent from this year’s target of P4.441 trillion.
These will be sourced from taxes on net income and profits, property, domestic goods and services and international trade and transactions.
The Bureau of Internal Revenue (BIR) will contribute most of the levies with P3.736 trillion, a 10.10-percent increase from its tempered goal of P3.393 trillion this year.
The Bureau of Customs (BOC), meanwhile, will collect an estimated P1.074 trillion, up by 6.29 percent from the increased P1.011 trillion target this year.
In contrast, non-tax revenues are expected to drop by 22.66 percent to P252.9 billion in 2027 from the current goal of P327 billion.
These will come from fees and charges, income from Treasury operations, income collected by the Treasury and other sources.
Revenues from privatizing government assets were also increased to P101.5 billion next year, a 166.40 percent growth from this year’s revised P38.1 billion target.
Moreover, the passage of tax reform measures is seen to contribute a total of P31.956 billion in revenues for the government in 2027.
The value-added tax on digital service providers is expected to yield P24.673 billion, while the rationalization of the mining fiscal regime will generate P6.104 billion. Excise tax on pick-up trucks will also bring in P7.443 billion.
However, the Capital Markets Efficiency Promotion Act and the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy or Create More will result in P4.614 billion and P1.650 billion in revenue losses, respectively.
The Cabinet-level Development Budget Coordination Committee (DBCC) expects GDP growth to accelerate to 5 to 6 percent in 2027 from 3.5 to 4.5 percent in 2026.
Climate-related disruptions, concerns over anomalous flood control projects, and broader global economic uncertainties, which dampened construction activity and private consumption, prompted the DBCC to temper this year’s growth target and the fiscal program.