BIR Tax Refunds Nearly Double to ₱23.67 Billion in Nine Months as Bureau Rushes Approved Claims

September 27, 2026
3 min read

The Bureau of Internal Revenue released 90.6% more in refunds from January to September than it did over the same period last year, with the commissioner citing cash-flow relief for businesses squeezed by the ongoing energy crisis.

The Bureau of Internal Revenue (BIR) released ₱23.67 billion in tax refunds between January and September 2026, a 90.6% jump from the ₱12.42 billion released over the same nine months in 2025, according to a September 26, 2026 report by The Philippine Star's Aubrey Rose Inosante. The bureau's own account of the surge is straightforward: once a claim clears evaluation, there's no reason to sit on it.

"Once a refund has been properly evaluated and approved for release, we see no reason to unnecessarily delay it," BIR Commissioner Charlito Martin Mendoza said, framing the faster turnaround as a deliberate policy rather than a byproduct of backlog clearing. Mendoza tied the push to helping businesses "preserve cash flow and keep their operations moving, particularly amid the ongoing energy crisis" — a reference to the power-sector strain that has also driven up pump prices and electricity rates this year.

The refund push is being framed by the administration as part of a broader ease-of-doing-business push. Finance Secretary Frederick Go has spoken of making government transactions "easier, faster and less costly for businesses," and the refund acceleration is presented as one visible outcome of that directive, alongside President Marcos's general order to streamline government transactions.

What the reporting does not establish is the composition of the refunds — whether the increase is concentrated in VAT refunds, income tax, or another category — nor does it break down how much of the jump reflects genuinely faster processing of new claims versus the clearing of older, previously stalled ones. The BIR has not published, at least as reported so far, a category-by-category breakdown alongside the topline figure, which limits how precisely the "rushed claims" description in earlier wire reporting can be verified against the bureau's own data.

The refund figure sits against a backdrop of otherwise solid collections: the BIR brought in ₱2.24 trillion from January to August 2026, up 4.6% year-on-year. Doubling refunds while overall collections still grow is, on its face, consistent with the bureau's claim that this is deliberate service improvement rather than a sign of over-collection needing correction — but neither BIR nor the Department of Finance has laid out that comparison explicitly, leaving readers to draw the inference themselves.

Context

The refund increase comes as the government has already trimmed its 2026 tax collection target to ₱4.44 trillion and as national debt sits at a record ₱19.39 trillion, raising the general question of how faster refunds interact with a fiscal position the Department of Finance has separately described as needing careful management. Neither the BIR nor DOF statements reported so far address that tension directly.

Sources

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