BIR cracks down on fake PWD IDs as revenue losses hit P88B

THE Bureau of Internal Revenue (BIR) is stepping up its campaign against the proliferation of fake person with disability (PWD) identification cards, which have led to an estimated PHP88.2 billion in revenue losses in 2023.

BIR Commissioner Romeo Lumagui Jr. on Thursday announced that all officials have been directed to collaborate with other government agencies to curb this tax evasion scheme.

Fake PWD IDs, often sold on the streets and online, allow unauthorized individuals to fraudulently avail of a 20-percent discount and VAT exemption mandated by law for legitimate PWDs.

“This is not just tax evasion—it is a grave insult to legitimate PWDs who rely on these benefits for their well-being,” Lumagui said.

“We will aggressively pursue those behind this scam.”

The BIR will intensify tax audits of establishments, requiring them to submit records of PWD transactions, including ID details. Fake IDs will result in disallowed deductions and penalties for deficiency VAT.

In coordination with the Department of Health and the National Council on Disability Affairs, the BIR aims to ensure only valid PWD IDs are honored. Lumagui vowed to protect the integrity of the PWD benefits system and hold violators accountable.