MANILA -- The Bureau of Internal Revenue (BIR) said Wednesday it achieved its target of collecting P2.848 trillion last year.

This is the first time in 20 years that the BIR hit its collection goal, it said.

BIR Commissioner Romeo Lumagui praised the agency's employees for improving tax collections.

"Our dedication to good governance reforms, manifested by our shift to a taxpayer-oriented agency, has increased the voluntary compliance of taxpayers," he said.

The official said this showed that Filipinos would pay their taxes when government agencies improve their services, processes, and programs.

The BIR last year exempted medicines for cancer, diabetes, hypertension, and mental illnesses from value-added tax (VAT).

It said it supported the move to exempt more medicines from VAT.

BIR says backs more VAT-exempt medicines despite tax collection losses

The bureau also went after vape products with millions of pesos of tax liabilities.

BIR seizes vape products with P415-M tax liabilities

In September, the BIR signed an agreement with business groups to help improve taxpayer services and entice businesses to pay proper taxes.

BIR, business groups sign agreement to improve tax collection

The BIR will continue its cooperation with the private sector and its taxpayers in order to boost collections, Lumagui said.