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April 12, 2024

Maximizing tax collection efficiency: BIR mandates banks to extend banking hours and Saturday operations

As the deadline looms for annual income tax returns, the Bureau of Internal Revenue (BIR) has issued a directive to authorized agent banks, urging them to facilitate tax payments on the two Saturdays preceding the April 15 cutoff.

Additionally, banks are mandated to extend operating hours until 5 pm from April 1-15, 2024.

This year, the deadline coincides with a Monday, intensifying the need for extended banking services.

These measures stem from a memorandum of agreement jointly endorsed by banks, the BIR, and the Bureau of the Treasury. Bank Bulletin No. 2024-1, signed by BIR Commissioner Romeo Lumagui Jr., outlines specific instructions for authorized agent banks, including the reporting of collections accepted on April 6 and 13 on the subsequent business day.

Machine validation of the Annual Income Tax Return (AITR) in the deposit slip and submission of batch control sheets must adhere to existing protocols.

The BIR, being the primary revenue collector, accounted for a substantial portion of government income, amounting to P2.5 trillion out of the P3.4 trillion total tax revenues in 2023.

April typically marks the peak of BIR collections, with April 2023 recording a collection of P336 billion, followed by P274 billion in October and P235 billion in January.