The Bureau of Internal Revenue (BIR) reported a significant increase in tax collections for March 2026, with gross revenues reaching P198.75 billion—an 11.87% jump compared to the same period last year. This surge is largely attributed to rising global oil prices, driven by ongoing conflict in the Middle East, which has pushed fuel costs above $100 per barrel and increased value-added tax (VAT) collections.
"Our March 2026 collection performance is encouraging, especially at this time of economic strain," said BIR Commissioner Charlie Mendoza. "We heed the directive of President Ferdinand Marcos Jr. and Finance Secretary Frederick Go to help ensure that the government has steady revenues to fund essential services."
After accounting for tax refunds, net collections stood at P187.4 billion, reflecting a 6.68% year-over-year increase. The BIR noted that refunds were five times higher than last year's figures, as more funds were returned to taxpayers and businesses grappling with the energy crisis.
Mendoza acknowledged that while higher oil prices may boost certain tax lines related to petroleum products, they also pose risks. "Rising energy costs can create pressure on businesses and households by increasing operating expenses and affecting demand, so the overall impact is mixed," he explained.
Looking ahead, the BIR anticipates continued revenue growth, supported by the annual income tax filing season—extended to May 15 due to the national energy emergency—and sustained high oil prices. However, the agency remains cautious about the broader economic effects of escalating energy costs on consumption and business operations.