President Ferdinand Marcos Jr. is pushing for the swift passage of his proposed tax relief package within the year, even as the Department of Finance (DOF) works to fine-tune offsetting revenue measures, Malacañang stated Tuesday.
Communications Undersecretary and Palace Press Officer Claire Castro affirmed that while the President is aware the DOF is actively reviewing the “Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability” framework, he remains eager for Congress to act swiftly.
“Sa ngayon ay inaaral pa, working on it ang DOF. At alam naman ng Pangulo na kasalukuyan itong binubusisi ng DOF kasi nais ng Pangulo na ito ay maipasa sa pinakamabilis na panahon,” Castro said.
When asked if the administration aims for the tax package to pass next year, Castro emphasized the President’s preference for a faster timeline.
“Ang gusto ng Pangulo, sana ngayong taon,” she said.
The proposed tax reform seeks to raise the annual taxable income exemption threshold from ₱250,000 to ₱350,000 and exempt eligible micro and small enterprises from paying the minimum corporate income tax.
According to DOF estimates, the measures will cushion at least 3.13 million individual taxpayers—96% of whom belong to lower-middle to middle-income brackets—alongside roughly 78,000 small businesses.
To offset the anticipated revenue losses, the finance department is considering new or adjusted levies on sweetened beverages, alcohol, e-cigarettes, vape devices, novel tobacco products, single-use plastics, and motor vehicle charges. These dynamic tax adjustments are projected to generate ₱518.71 billion from 2027 to 2030, delivering a net fiscal gain of nearly ₱192 billion.
Castro assured the public that the reform framework is specifically structured to shield lower and middle-income Filipinos from absorbing the brunt of new levies.
“Iyong iba kasing tax na nababanggit ay hindi ang mga pangkaraniwang mamamayan ang maapektuhan. Mas maaapektuhan nito iyong bumibili ng mga mamahaling sasakyan,” the Palace official noted.
“Ito ay inaaral. Hindi naman iyong mga middle income ang usually maaapektuhan nung mga binabalak po na tax reform,” she added.
Addressing potential hikes on sweetened beverage taxes, Castro highlighted the health benefits behind the policy.
“Ito naman ay patungkol sa kalusugan. Mas maganda ngang maiwasan kung tayo ay laging magko-consume ng napakatamis na mga kakanin o pagkain o inumin,” Castro explained.
The DOF is currently preparing to launch nationwide consultations with lawmakers and key stakeholders to finalize the proposed legislative package.