BIR tax abatement program big help to small businesses – PCCI

Four women smiling at a table filled with various food items, including jars and packages, set up at an outdoor event.

MANILA – A business group on Wednesday cited gains of the Bureau of Internal Revenues’ (BIR) tax abatement program, saying this greatly benefits micro, small and medium enterprises (MSMEs).

The Philippine Chamber of Commerce and Industry (PCCI), in a statement, said the program “gives micro businesses a practical way to resolve old tax liabilities and close pending cases.”

“For many micro enterprises, unresolved tax cases add financial pressure and uncertainty on top of the day-to-day challenges of running a business. The abatement program allows qualified taxpayers to settle covered obligations and put these cases behind them,” it said.

MSMEs account for over 99 percent of business enterprises in the country and employ around 66 percent of workers, government data showed.

Citing BIR data, PCCI said around 3,929 micro businesses have availed of the program, canceling a total of PHP266.79 million worth of taxes and penalties as of Oct. 24, 2026.

The statement said BIR has received around 17,101 applications and some 15,050 of these have been approved.

“PCCI strongly supports the BIR’s plan to expand the program to small taxpayers. Extending the program to businesses with annual gross sales of PHP3 million to below PHP20 million will allow more enterprises to resolve outstanding tax cases and ease a burden that may have remained on their books for years,” it said.

“As many MSMEs continue to recover and expand, sustained access to clear guidance, taxpayer education, and responsive assistance from the BIR can make a meaningful difference in their ability to meet their obligations with confidence,” it added. (Joann Santiago-Villanueva/PNA)

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