MANILA, Sept. 1 (Xinhua) -- Tax collections from foreign digital service providers in the Philippines reached 17.5 billion pesos (about 307 million U.S. dollars) in the first half of 2026, local media reported Monday.
According to the Manila Bulletin on Monday, the amount accounts for three-fourths of the government's full-year target of 23.1 billion pesos, compared to the 6.6 billion pesos collected in the initial six months of the value-added tax (VAT) on digital services program, according to the Bureau of Internal Revenue (BIR).
BIR Commissioner Charlito Martin R. Mendoza said the growth reflects rising digital activity among consumers and businesses.
The 12-percent VAT on digital services took effect in June 2025, which was the only tax reform that generated new revenues, while other measures cut revenues by over 2.6 billion pesos. Total BIR collections reached 1.99 trillion pesos in the first half, up 5.3 percent year on year. ■