Category: Business Mirror

JEANIA MARQUEZ-MONTEJO, a retired state teacher, passed away on Sunday in San Pedro City, Laguna. She was 81.

She was survived by husband Guillermo ‘Jimmy’ Montejo of the Manila Standard, sister Miriam and husband Romulo Laylay, brothers Dr. Edgardo Marquez and wife Myla, and former Vice Mayor Dante Marquez of Boac, Marinduque; nephews and nieces.

Her remains are available for viewing at the St. Peter’s chapel in San Pedro City. Cremation will be on Wednesday at St. Peter’s Memorial Chapel crematory.

THE tax relief package being pushed by President Ferdinand R. Marcos Jr. may put more money in the pockets of workers and small entrepreneurs, but economists warned that without measures to replace the foregone revenues, the government may be risking a ‘fiscal suicide.’

In his fifth State of the Nation Address on Monday, Marcos called on Congress to pass a package of tax relief measures for middle-class workers and small businesses.

The proposed measures include a higher personal income tax exemption, the removal of corporate income tax for qualified small businesses, and an amnesty covering several types of unpaid national taxes and the corresponding penalties.

De La Salle University economist Maria Ella C. Oplas was blunt about the possible fiscal cost of reducing revenues while the government continues to expand spending.

‘I would rather call it fiscal suicide for the administration,’ Oplas told the BusinessMirror. ‘Where will the government get the funds for its expenditures, if not through borrowing?’

Under the proposed reform, individuals earning no more than P350,000 annually would be exempted from personal income tax, raising the tax-free threshold by P100,000 from the current P250,000.

Under the existing graduated income tax schedule, annual taxable income above P250,000 but not exceeding P400,000 is taxed at 15 percent of the excess over P250,000.

This means an individual with annual taxable income of exactly P350,000 currently owes P15,000 in income tax. Raising the exemption threshold to P350,000 could therefore provide that taxpayer with savings of as much as P15,000 annually, although the actual benefit would depend on the tax brackets and computation rules ultimately approved by Congress.

The proposed package would also exempt qualified small businesses from corporate income tax and grant amnesty on unpaid income, estate, donor’s and value-added taxes, including the penalties and fees attached to these liabilities.

Ateneo de Manila University economist Alvin P. Ang said the measures are useful short-term safety nets for households and businesses directly affected by the oil crisis.

However, he warned that the proposals could pose fiscal risks because it is unclear how the resulting revenue losses and its broader assistance programs would be financed.

‘The challenge is how to fund all of these sustainably. Measures towards improving fiscal sustainability are missing,’ Ang told the BusinessMirror.

Another Ateneo economist, Leonardo A. Lanzona, said the Sona did not clearly explain how the proposed tax relief and other spending commitments would be financed, whether through higher taxes, additional borrowing or cuts elsewhere in the budget.

‘When an address defers this accounting to Congress to work out the details, it shifts the burden of unpopular tradeoffs onto legislators after the political credit for the promise has already been banked by the executive, and it leaves the public unable to judge whether the vision presented is fiscally serious or simply aspirational,’ Lanzona told the BusinessMirror.

Revenue, deficit implications

UnionBank of the Philippines Chief Economist Ruben Carlo O. Asuncion said the proposed tax relief package could further weaken government collections at a time when revenue targets have already been lowered.

Earlier this month, the Development Budget Coordination Committee cut the Bureau of Internal Revenue’s 2026 collection target by P38 billion to P3.393 trillion after lowering its economic growth forecast to 3.5 percent to 4.5 percent from 5 percent to 6 percent.

‘The key challenge is ensuring that foregone revenues are offset by stronger tax administration, improved collection efficiency, expenditure prioritization, and faster economic growth,’ Asuncion told the BusinessMirror.

He said significant revenue losses, if left unaddressed, could also make the government’s deficit targets more difficult to meet.

The DBCC recently widened its 2026 budget deficit projection to P1.658 trillion, equivalent to 5.4 percent of gross domestic product, from the P1.611 trillion, or 5.3 percent of GDP, projected last year.

The budget hole is projected to stretch until 2028-P1.695 trillion in 2027 and P1.722 trillion in 2028-before contracting in 2029 and 2030.

Without sufficient revenue offsets, Lanzona said the government would have to rely more heavily on borrowing to finance the tax relief package.

He noted that the Sona did not cite accompanying measures to broaden the tax base, such as higher excise taxes or fewer value-added tax exemptions.

Such borrowing could postpone, rather than eliminate, the need for fiscal adjustment, Lanzona said, leaving the full cost to surface late in Marcos’s term or under the next administration.

‘The fiscal reckoning likely falls either late in this term or onto the next administration, precisely the pattern where near-term political credit is banked ahead of medium-term discipline,’ he stated.

Pressure to cut spending

Avoiding a heavier debt burden would leave the government with another difficult option: cutting expenditures.

Oplas said the administration should consider closing or restructuring underperforming government corporations and state universities and colleges, while reducing unnecessary spending across the bureaucracy.

‘The government can finance its expenditures through fiscal prudence and lower spending. It should also recover the taxpayers’ money that was stolen,’ she added.

Oplas acknowledged that the proposed tax relief could also be intended to attract investments by lowering the cost of doing business.

But she said ‘it will take time for them to come in or start investing because they will still have to study the market and discern how sincere and effective the government is.’

Left unaddressed

Economists said the SONA also left several pressing macroeconomic and fiscal issues unresolved, depriving the public of a clear picture of the economy’s direction and whether the administration’s commitments are sustainable.

The speech did not provide an explicit economic growth target, debt-to-GDP figure or discussion of recent warnings about the country’s fiscal and development outlook, even as government debt has increased by roughly P6 trillion since 2022.

‘The speech substituted granular, disbursement-level accounting for aggregate fiscal exposure, which let the administration claim activity without confronting whether that activity is sustainable at current revenue effort,’ he said.

Oplas said the President cited numerous program outputs without providing adequate baselines or explaining their actual effects on households.

‘Numbers, especially if left with no baseline for comparison, don’t mean anything,’ she said.

‘The important question is: How did those programs affect people? He merely reported how many received assistance. He should have focused on the impact.’

THE independent film scene is buzzing with energy, and De La Salle-College of Saint Benilde is right at the center of the excitement. This year, Benilde has more reasons to celebrate as four more of its faculty members and alumni have been officially selected to compete in both the full-length and short film categories of the Cinemalaya Philippine Independent Film Festival 2026.

In the full-length category, Benilde Film educator Dustin Celestino unveils his tension-filled drama A.ni.mál. The plot kicks off when Lily, the daughter of a small-town mayor, returns home with a video that exposes a powerful governor abusing his dog. A.ni.mál stars Maxine Ignacio, Jojit Lorenzo, Reymund Domingo, Frances Makil-Ignacio, Bituin Escalante, and Anthony Falcon.

What sets A.ni.mál apart is that the entire film was shot using an iPhone 17 Pro Max. When financial constraints almost forced the team to back out, they decided to ditch traditional camera rentals. Instead, they redirected their budget to ensure the cast and crew were properly paid. Inspired by the raw, minimalist principles of Dogme 95, Celestino relied on natural light, sharp dialogue, and fly-on-the-wall framing to build an uncomfortable sense of reality.

Sharing the full-length spotlight is Benilde Film alumnus Vahn Leinard Pascual, who makes his feature directorial debut with the comedy-drama Status: Rejected. For Pascual, transitioning from an avid festival spectator looking up to industry icons to standing along with them as a peer marks a significant milestone in his artistic journey.

In the film, Virginia ‘Biring’ Divinagracia (played by Ruby Ruiz), a 69-year-old widow, feels lonely at home and longs to move to America to reunite with her favorite son. After facing her fourth visa rejection from the embassy, her best friend convinces her to dive into the digital world to look for a foreign partner instead. Ruiz co-stars with Alessandra de Rossi, Beverly Salviejo, and Yani Villarosa.

Moving over to the short film category, Celestino’s fellow Benilde Film faculty member Lot-lot Hermosura presents a deeply moving piece The River Flows in Different Places. The narrative traces the internal, emotional realities of two Filipino-Palestinian mothers forced to escape the conflict in Gaza. The documentary previously won the grand prize in the inaugural Films for Peace short film competition of the Film Development Council of the Philippines. Joining Hermosura is Benilde Multimedia Arts alumna Gabriela Serrano with her sci-fi drama Elenita Elena Elaine. Set during a single night in an alternate reality where humanity has entirely lost the ability to dream, the film weaves together the ordinary routines and internal worlds of three women: a pop idol bracing for her last televised performance, a fresh graduate packing up her childhood bedroom for a job overseas, and a call center agent watching her voice get swallowed by ambient noise.

Serrano directs, edits, and co-writes the screenplay with her sister Mariana. The short film features a stellar cast including Agot Isidro, Gabby Padilla, and Mariana Serrano.

Through raw storytelling, technical ingenuity, and deeply personal narratives, these Benildean filmmakers are showcasing the vibrant future of contemporary Philippine cinema. Catch their films from August 6 to 18 at Shangri-La Plaza Red Carpet Cinemas, Ayala Malls Manila Bay, Ayala Malls Circuit, Glorietta, Market! Market!, TriNoma, and Gateway Cineplex 18.

THE European Union (EU) should pursue a persistent trade agenda in Asia, noting that a future EU-Philippines free trade agreement (FTA) will define Sweden’s commercial ties with the country, a Swedish diplomat said.

Swedish Embassy First Secretary Karolina Zurek said the EU’s approach to trade is rooted in cooperation despite growing shifts in the global trading environment.

‘We are a union of 27 countries that have a common agreement about everything we do in trade relations. So I think we try to pursue a positive trade agenda,’ Zurek told reporters on the sidelines of the Kyiv-Manila Strategic Dialogues in Makati City.

The Philippines and the EU are continuing negotiations for a bilateral trade agreement, although Trade Secretary Ma. Cristina Roque earlier acknowledged that discussions have reached ‘a bit of a deadlock’ over one or two remaining issues.

Despite the remaining issues, Roque said both sides remain committed to concluding negotiations within the year and signing the agreement in 2027.

The EU was the Philippines’ fourth-largest trading partner in 2025, with bilateral goods trade reaching pound 17.6 billion ($20.13 billion), according to EU data.

Speaking specifically about Swedish companies, Zurek said they continue to look beyond market opportunities and place significant weight on governance and sustainability when deciding where to invest.

‘I think that from the perspective of Swedish firms, the important thing that they will be looking at is transparency,’ she said. ‘So transparent rules that are justly implemented, rule of law, but it will also be sustainability standards.’

Swedish companies also examine environmental and social standards throughout supply chains before expanding investments, she added.

‘As European companies, Swedish companies need to have an ambitious agenda when working with their value chain, so they will also look at what are the environmental and social standards in the Philippines in order to be able to conduct businesses here and do investments and feel confident with it,’ Zurek explained.

Data from the 2024 Philippine Market Report showed that Sweden exported $159 million worth of goods to the Philippines and imported $64 million, with bilateral trade rising 4.2 percent as exports and imports grew 4.6 percent and 4.1 percent, respectively.

The latest Swedish-Philippine Business Climate Survey showed that Swedish firms remain optimistic about the country’s growth prospects, but corruption concerns, regulatory hurdles and infrastructure gaps continue to dampen business confidence.

The Securities and Exchange Commission (SEC) said it will raise awareness of Sukuk as an alternative financing instrument, as the agency is advancing the development of the country’s Islamic finance market by encouraging companies to offer Shari’ah-compliant investment products.

Sukuk refers to certificates of equal value representing undivided investment, interest in or rights to the underlying assets, usufructs and services or projects undertaken in accordance with Shari’ah principles.

Implemented through SEC Memorandum Circular No. 12, Series of 2026, the guidelines provide the regulatory framework for Sukuk issuances, including rules on its registration, permissible structures and reporting and disclosure requirements of issuers, among others.

‘Our vision is simple: a Philippine capital market that is deeper, broader, and more inclusive-a market where every legitimate source of capital can find a place, and every investor can participate with confidence. Islamic finance is part of that vision,’ SEC Chairman Francis E. Lim said.

‘For many investors, financial decisions are shaped not only by economic returns, but also by faith, values, and ethical principles. Our markets must be ready to serve them as well.’

The SEC’s new guidelines allow Sukuk issuances to be made using Shari’ah-compliant structures and other Sukuk structures that may be approved by the agency, as well as the creation of special purpose entities for Sukuk issuances. It also provides the disclosure obligations of Sukuk issuers.

The issuance of the Sukuk guidelines builds on the active Islamic finance landscape with a total of 58 Shari’ah-compliant securities currently listed on the Philippine Stock Exchange and Philippine Sukuk totaling $1 billion issued by the Philippine government in 2023.

Last May, Fitch Ratings said in a non-rating commentary that the Philippine Islamic finance industry is still in the ‘nascent stage.’

Fitch Ratings said the Southeast Asian region’s Islamic finance industry exceeded $1 trillion in the first quarter.

Malaysia stood as the regional leader, with Islamic financing reaching 44 percent of banking system financing at end-2025.

PHILIPPINE exports worth about $6.25 billion could face higher costs in the United States after Washington’s new 12.5-percent tariff took effect, although government estimates show most of the country’s shipments remain exempt from the additional duty.

The Department of Trade and Industry (DTI) said a preliminary assessment based on 2025 trade data showed that around 34.28 percent of Philippine exports to the US, valued at approximately $6.25 billion, may be covered by the new tariff.

Meanwhile, exports worth about $11.98 billion, or nearly two-thirds of the country’s total shipments to the US, are exempt under the measure.

Among the products excluded from the tariff are major Philippine export items such as semiconductors, integrated circuits, automatic data processing machines, printers, headphones and projectors, as well as automotive parts, aircraft components, coconut products, processed and fresh fruits, cocoa, frozen cassava, taro, pastries and biscuits.

Mineral exports, including copper, nickel and cobalt ores and concentrates, are likewise exempt.

However, the DTI said several labor-intensive export industries remain subject to the additional duty, including leather and travel goods, apparel, footwear, and toys.

On Friday, the US imposed the new tariff after concluding that the Philippines had not adequately prohibited the entry of goods produced through forced labor.

The additional duties took effect at 12:01 p.m. Philippine time on July 24. Products already loaded onto vessels before the deadline and entered for US consumption before 12:01 p.m. Philippine time on July 28 are exempt.

In its submission to the Office of the US Trade Representative (USTR) earlier this month, the trade department argued that forced labor is not a systemic issue in the country’s export sector.

The agency said shipments denied entry into the US over forced labor concerns reached a total of only about $2.71 million, equivalent to roughly 0.01 percent of the $48.25 billion worth of Philippine goods imported by the US from 2023 through the first two months of 2026.

The US remained the Philippines’s largest export market in 2025, accounting for $13.46 billion, or 15.9 percent, of the country’s total exports, based on Philippine Statistics Authority data.

New interagency body

A day before Washington announced its tariff decision, the Departments of Trade and Industry, Labor and Employment (DOLE), and Finance (DOF) signed a Joint Administrative Order (JAO) creating an interagency system to investigate and prohibit the importation of goods produced wholly or partly through forced labor.

Trade Undersecretary Ceferino Rodolfo said the measure has already attracted support from international development partners.

‘The good thing is that we have received offers from multilateral institutions as well as bilateral partners…they want to help us implement this JAO,’ Rodolfo said in a mix of English and Filipino during a virtual press briefing on Friday.

He said several partners have expressed willingness to provide technical assistance and grants to help implement the new policy, noting that they viewed the JAO as strengthening the country’s commitment to promoting decent work and safeguarding supply chains.

Rodolfo added that the interagency committee created under the JAO is already in effect, while implementing rules and regulations are being drafted.

Under the order, the Inter-Agency Committee for the Investigation of Imports Produced by Forced Labor will receive complaints, evaluate evidence and investigate allegations involving imported goods suspected of being produced through forced labor.

The committee is chaired by the DTI, with the DOLE serving as vice chair. Members include the DOF, Bureau of Customs (BOC), Board of Investments and Philippine Economic Zone Authority.

Investigations may be initiated by the committee, referred by government agencies or filed by private individuals, civil society organizations or international groups, provided supporting evidence is submitted.

Importers under investigation will be given 15 days to respond after receiving notice. If substantial evidence is found that goods were produced wholly or partly through forced labor, the committee may recommend that the BOC stop their importation.

The order applies to imported goods before their release from customs custody, with detailed implementing guidelines scheduled for issuance within 90 days.

Besides a wage hike, one way to increase the take-home pay of more Filipino workers and provide them with relief from the continued increase in the already high cost of living is an expansion in the annual income tax exemption, according to Senator Bam Aquino. Thus, he is pushing for the passage of his measure seeking to raise the annual income tax exemption threshold from P250,000 to P480,000.

Aquino’s Senate Bill No. 267 proposes an amendment to the National Internal Revenue Code that would exempt individuals earning up to P480,000 a year from paying income tax.

Filed on July 8, 2025, the measure was one of the first bills filed by Aquino following his 2025 successful senatorial campaign, where Filipinos called for affordable living and increase in take-home pay.

‘This [income tax exemption level] has not moved for many years, so when session starts [July 27], I will have this included as priority legislation in order to provide fast relief to our people and increase their take-home pay,’Aquino said, speaking partly in Filipino.

Aquino said the current exemption level, which was set under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, has become outdated as inflation continues to erode workers’ purchasing power.

Aside from easing the financial burden on Filipino families, Aquino said raising the income tax exemption threshold would allow workers to keep more of what they earn, giving them additional resources to spend on essential needs such as food, education, and healthcare, while also helping boost consumer spending and economic activity.

Aquino has also filed several other proposed measures aimed at providing relief to Filipinos amid rising prices of goods and services, petroleum products, and electricity.

To help reduce electricity costs, he filed Senate Bill No. 266, which seeks to exempt the sale of electricity by generation, transmission, and distribution companies, as well as electric cooperatives, from the imposition of value-added tax (VAT).

He is also pushing to reduce the VAT from 12 percent to 10 percent on goods and services, including petroleum products, through Senate Bill No. 2047.

THE Philippines takes on two formidable opponents-Jordan and Iran-in the fourth window of the FIBA 2027 World Cup Asia Qualifiers at home in August.

A month before taking on Jordan on August 28 and Iran on Augusty 30 at the SM Mall of Asia Arena, head coach Tm Cone is faced with several options but with one goal-form a consistent Gilas Pilipinas core.

‘We must have a consistent core,’ Cone told the BusinessMirror on Monday.

‘Jordan and Iran are absolutely crucial games for us and for our countrymen and obviously, we must deepen our preparation against them,’ he added.

Cone said he’s looking at 7-foot-3 Kai Sotto and 6-foot-10 Quentin Milloria-Brown-but Sotto’s commitment isn’t solid.

‘We’re not yet sure about Kai…where he is going to be exactly at that time,’ said Cone of Sotto, who skipped national team duties to focus on his National Basketball Association dream.

Milloria-Brown’s not 100 percent, too.

‘QMB is coming from [back] injury,’ he said.

Even Justin Brownlee’s health isn’t a sure thing-he’s sidelined with a right hamstring strain, right peroneal tendinopathy and left knee swelling with cartilage defects.

So Cone’s best option at the naturalized player spot would be Benny Boatwright.

Boatwright’s naturalization has passed the Senate and his fate now lies on President Ferdinand Marcos Jr.

If Benny Boatwright gets the approval, we must put him in practice to familiarize himself with our system,’ Cone said.

Thus, Gilas Pilipinas needs to sweep Jordan and Iran to fan its hopes for the 32-nation World Cup Qatar is hosting next year.

‘We play at home and we have to make sure we play our best,’ Cone said.

SENATORS on Monday laid down their own expectations on what they hoped the 2026 State of the Nation Address (Sona) should contain, hours ahead of President Ferdinand Marcos’s delivery at the Batasan complex.

Senate President Sherwin Gatchalian said he expects the State of the Nation Address (Sona) to report on the progress of implementing the historic 2026 education budget, the largest in the country’s history and the first to meet the United Nations’ recommended benchmark for education spending.

‘Naglaan tayo ng makasaysayang pondo para sa edukasyon upang masugpo natin ang malawakang krisis na hinaharap ng sektor na ito. Inaasahan nating sa darating na Sona, malinaw na maiuulat sa atin kung ano na ang narating natin at ano pa ang ating aasahan para tugunan ang krisis sa edukasyon,’ said Gatchalian.

[We allotted a big budget for education so we can solve the huge crisis faced by this sector. We expect that in the Sona, we can hear a clear report on what has been achieved to respond to this crisis]

For Sen. Anna Theresia ‘Risa’ Hontiveros, millions of Filipinos are eager to hear, ‘how much or how quickly will government act on the rising costs for electricity, water, fuel and food?’

Sen. Joel Villanueva said Filipinos expect this year’s Sona ‘to go beyond promises and present a clear roadmap that delivers quality jobs, better education, and relief from hunger.’

Historic education funding

THE 2026 education budget touted by Gatchalian includes a ?67.9-billion allocation for the construction of at least 22,000 classrooms. As of July 2025, the classroom backlog stands at around 147,000 classrooms. This year’s budget also covers the ?12.3-billion funding deficiency in the free higher education program incurred from 2022 to 2025.

During his stint as chairman of the Senate Committee on Finance, Gatchalian ensured that the 2026 budget met the United Nations’ recommendations of allotting 4-6 percent of Gross Domestic Product (GDP) for education spending.

The 2026 budget’s ?1.35 trillion education budget is equivalent to 4.4 percent of GDP.

Meanwhile, Hontiveros said people want to know how the take-home pay of each worker can be increased if every centavo of the ?85 minimum wage hike [in Metro Manila] just goes straight to paying for electricity.

‘How do we end the joblessness crisis especially when so many youth from all regions, especially college graduates, can barely find liveable jobs or livelihood?’ she continued

More important, how can corruption be licked decisively and investor confidence in the country restored, the senator added.

Hontiveros wants the VAT windfall revenues used to expand the lifeline rates, refund the ‘bogus fuel cost,’ and fast-track the transition to renewal energy to ensure sustainable supply of electricity.

In agriculture, offering ?20 per kilo of rice is not enough. ‘Our crops are weak, farmers are wary of Super El Niño. If the supply shock is not resolved, we might reach the level of ?80 per kilo. We need targeted fuel and fertilizer subsidies, Asap [as soon as possible],’ Hontiveros added.

For Villanueva, ‘This year’s Sona must answer the questions that matter most to ordinary Filipinos: Where are the jobs? How will families put food on the table? How will we reduce poverty? How do we give our children a better future through education?’ Villanueva said.

The senator said Filipinos continue to grapple with rising costs and economic uncertainty, and are pinning their hopes on the government.

As of May 2026, unemployment rate increased to 4.8 percent, or an equivalent 2.5 million jobless Filipinos.

Underemployment rate, meanwhile, is at 12.2 percent, or 6.04 million Filipinos who seek more hours of work or an extra job.

Hunger incidence, according to the March 2026 Social Weather Stations survey is at 23.2 percent, higher than the November 2025’s 20.1 percent.

Inflation is at 6.4 percent in June 2026, way higher compared to 1.4 percent in June 2025.

ON July 31, 2026, the Bureau of Internal Revenue will commemorate its 122nd anniversary with the theme ‘Husay at Dangal: Lingkod-Bayan ng BIR.’

The BIR was formally organized and made operational on August 1, 1904, following the enactment of Reorganization Act No. 1189 on July 2, 1904. It began with only 69 officials and employees, headed by the first Collector of Internal Revenue. From that modest organization emerged the government institution that now carries the principal responsibility for financing public services and national development.

I am pleased to have been invited to join this year’s anniversary celebration on July 31 at the BIR National Office compound in Diliman, Quezon City. This year’s gathering will be more low-key than the elaborate celebrations of some previous years-a fitting opportunity for reflection rather than spectacle.

The anniversary provides an occasion to look back at the reforms that transformed the BIR from a predominantly manual organization into an increasingly digital and data-driven, service-oriented tax administration. I have discussed the administrative reform undertaken by the BIR over the past decades. For my article next week, I will dwell on the major laws that were passed over the more than a century of existence of the BIR.

One of the earliest foundations of modern tax administration was the establishment of a unified system for identifying taxpayers. The old Tax Account Number, or TAN, was first utilized in 1976. I still retain the light yellow colored TAN card issued to me in 1980 when I started working.

The TAN was eventually replaced by the Taxpayer Identification Number, or TIN, in 1991. The TIN became the permanent identifier linking taxpayers to their registration, return filing, payment, and audit records.

The next great milestone was the Tax Computerization Project (TCP), which started in the 1990s. This produced the Integrated Tax System, or ITS, supported by Revenue Data Centers, computerized registration, returns processing, collection accounting, and taxpayer-account databases. Computerization began replacing ledgers, index cards, and physical folders that previously made the verification of taxpayer information slow and difficult. I am proud to have been part of the TCP, having been appointed one of the Project leaders at the time.

One major milestone in the BIR history was the creation of the Large Taxpayers Service (LTS) in 2000. This brought the country’s biggest corporate taxpayers under specialized monitoring and account management. The LTS model recognized that a relatively small number of taxpayers accounted for a substantial share of government revenues. The Large Taxpayers Service (LTS) has consistently contributed about 55 percent to 60 percent of the Bureau of Internal Revenue’s total tax collections over the past two decades

The launching of the Electronic Filing and Payment System, or eFPS, in 2001, was another historic milestone. It enabled taxpayers to file returns and pay electronically, reducing dependence on paper returns and over-the-counter transactions. What started with large taxpayers was subsequently expanded to other mandatory users. Incidentally, the eFPS celebrates its 25th year of existence this year. About 85 percent of BIR tax collections are now received through the eFPS.

The Reconciliation of Listings for Enforcement, better known as RELIEF, introduced data matching into tax enforcement. Through taxpayers’ schedules of sales and purchases, the BIR could compare a seller’s declared sales with the buyer’s reported purchases. Discrepancies became potential indicators of under-declaration, unreported income or unsupported claims.

RELIEF was revolutionary for its time. It demonstrated that tax enforcement need not depend solely on an examiner manually inspecting books. Information already submitted by taxpayers could be matched and analyzed to identify compliance risks.

Another important development was the publication of the BIR Monitor, a weekly newsletter which started as a printed copy with pictures of activities conducted by BIR employees. It continues to be issued to this day, trumpeting the achievement of revenue, but now in digital form already. I was then the BIR Commissioner who conceptualized and created the BIR Monitor in 2009.

Enforcement programs also became more visible. The Run After Tax Evaders, or RATE, program institutionalized the filing of criminal tax-evasion complaints. Oplan Kandado authorized the temporary closure of businesses for serious violations, including substantial understatement of sales and failure to issue invoices. Industry benchmarking, lifestyle checks, third-party information matching and inter-agency data exchanges further expanded the BIR’s enforcement tools.

During my term as Commissioner from 2009 to 2010, we pursued the reinvigoration of RATE, Project R.I.P. or ‘Rest in Peace’ for the estates of deceased taxpayers with unsettled obligations, taxpayer lifestyle checks, the development of industry champions and audit of large-ticket items. We also strengthened linkages with other government agencies to provide the BIR with information useful for registration, assessment and collection. The BIR’s historical account records these initiatives as part of its institutional development.

I will discuss in a future column the tax collections and strategy of the BIR in raising revenues by means of administrative tax amnesties. There were several of these measures instituted by the BIR that resulted in billions of taxes collected. These, with the legislative tax amnesties, will be a topic of discussion in a future article.

The subsequent introduction of eBIRForms in 2012 gave taxpayers outside eFPS an electronic facility for preparing and filing returns. The newer Electronic Tax Information System, or eTIS, was intended to replace and improve upon the aging ITS platform.

More recent reforms include the Online Registration and Update System, or ORUS, that was launched in 2022. Through ORUS, taxpayers can conveniently apply for registration and update certain information online. The BIR now also provides electronic facilities involving tax clearance, certificates authorizing registration, appointments, payments and other transactions. Its Citizens’ Charter confirms that several registration services, including applications for TINs, are now available through ORUS.

The Electronic Invoicing System represents the next major frontier. Instead of waiting for periodic returns and summary lists, electronic invoicing can eventually provide the BIR with more timely transaction-level information. Properly implemented, it can strengthen VAT verification, detect fictitious transactions, improve audit selection and support near-real-time compliance monitoring.

The BIR is now entering the age of compliance-risk management, advanced analytics and artificial intelligence. The central challenge is no longer simply to collect more information. It is to integrate registration, invoicing, customs, property, corporate and financial information and convert these into fair and defensible compliance actions.

Technology, however, is not reform by itself. Digital transformation must produce faster taxpayer service, fewer unnecessary audits, risk-based selection, transparent case monitoring, and greater accountability among revenue officers. It should make compliance easier for honest taxpayers while making evasion more difficult.

As the BIR celebrates 122 years, its history should remind us that every generation of revenue officers inherited reforms from those who came before them. TAN led to TIN. Manual records led to computerization. Computerization led to electronic filing. Electronic filing and RELIEF led to data matching. These, in turn, are leading toward e-invoicing, tax analytics, and artificial intelligence.

The anniversary is therefore not merely a celebration of longevity. It is a celebration of public service and a reminder of unfinished work.

To Commissioner Charlito ‘Charlie’ Mendoza, the officials and employees of the Bureau, former revenuers, taxpayers, and the BIR’s institutional partners: congratulations on the 122nd anniversary of the Bureau of Internal Revenue.

May the next chapter of its history be defined by integrity, innovation, taxpayer trust and the continuing mission of bringing in revenues for nation-building.

To be continued

Joel L. Tan-Torres was the former Dean of the University of the Philippines Virata School of Business. Previously, he was the Commissioner of the Bureau of Internal Revenue, the Chairman of the Professional Regulatory Board of Accountancy, and a partner of Reyes Tacandong and Co. and the SyCip Gorres and Velayo and Co. He is a Certified Public Accountant who garnered No. 1 in the CPA Board Examination of May 1979. He is now back to his tax practice with his firm, JL2T Consulting. He can be contacted at joeltantorress@yahoo.com.