Philippines Tax Receipts Slow, Government Turns to PNBP

Manila – The Philippines' finance ministry said on 31 October 2025 that tax collections for 2025 are slowing, making the PHP 4.2 trillion (about US$ 260 million) target difficult to meet. The target is part of the fiscal budget that runs until 30 June 2026.

Deputy Finance Minister Charlito Martin Mendoza cited factors such as infrastructure projects by the Public Works and Highways Department and recent earthquake disruptions that have reduced the tax base. The government intends to offset the shortfall by boosting non‑tax revenue (PNBP) and advancing tax‑administration reforms.

Should the tax gap persist, PNBP will become the primary source to preserve fiscal balance before the fiscal year ends. The measure aims to stabilise public finances and sustain government services.