Business group cheers BIR shift toward simpler taxes

The Philippine Chamber of Commerce and Industry (PCCI) believes the Bureau of Internal Revenue (BIR) may finally be turning a page on one of the private sector’s longest-running frustrations: a tax system often seen as costly to comply with and difficult to navigate.

The country’s largest business organization welcomed a series of reforms introduced by BIR Commissioner Charlito Mendoza, saying the measures could reduce compliance costs, improve transparency, and make the Philippines a more attractive destination for investment.

Among the reforms highlighted by the PCCI are the abolition of redundant value-added tax (VAT) audit units under Revenue Administrative Order No. 004-2026, the reorganization of the agency’s human resource functions, a one-time tax abatement program for micro taxpayers, and the revival of the BIR-Private Multi-Sectoral Group (PMSG), a consultative body linking tax authorities and the business community.

PCCI President Perry Ferrer said the reforms respond directly to long-standing calls for a simpler and more predictable tax administration system. He noted that the BIR’s shift to a single-instance audit framework should reduce unnecessary examinations, limit opportunities for abuse, and provide businesses with greater certainty when dealing with tax authorities.

For companies, predictability can be just as valuable as lower taxes. PCCI Taxation Committee Chair Benedicta Du-Baladad said removing overlapping VAT audits would cut compliance costs while encouraging voluntary tax compliance. She added that restoring the BIR-PMSG partnership creates a formal channel for businesses to help shape future tax policies instead of merely responding to them.

The chamber also backed the BIR’s focus on workforce development, arguing that better-trained and more motivated personnel are essential to improving taxpayer service.

Taken together, the reforms form part of Commissioner Mendoza’s DARES agenda, which spans digital transformation, audit modernization, revenue protection, employee empowerment, and service excellence. For businesses, the message is encouraging: improving the investment climate sometimes begins with making it easier to pay taxes than to worry about them.

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