President Ferdinand R. Marcos Jr. wants the proposed Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) bill passed within the year, Malacañang said Tuesday.
In a press briefing, Palace Press Officer Claire Castro said the Department of Finance (DOF) continues to refine the proposed measure that is expected to generate around PHP191.77 billion to offset the revenue losses from planned tax relief measures.
Asked whether Marcos is aware of the bill’s provisions and if he would certify it as urgent, Castro said the proposal remains under review.
“Sa ngayon po ay inaaral pa. Working on it ang DOF at alam naman po ng Pangulo na kasalukuyan itong binubusisi ng DOF kasi nais po ng Pangulo na ito ay maipasa sa pinakamabilis na panahon (Right now, it is still being studied. The DOF is working on it, and the President is aware that the department is thoroughly reviewing the proposal because he wants it passed as soon as possible),” she said.
When asked about the DOF’s estimate that the package would require PHP326 billion in funding while generating around PHP518.71 billion from 2027 to 2030, Castro assured the public that the proposed tax reforms would not burden ordinary Filipinos, including middle-income earners.
She noted that some of the proposals would primarily affect luxury goods, such as high-end vehicles.
“So, hindi naman po ang middle income ang usually maapektuhan nang binabalak po na mga tax reform (Middle-income earners are generally not the ones who will be affected by the proposed tax reforms),” Castro said.
The Palace official also stressed that the proposed higher taxes on sugary drinks, single-use plastics and vape products are intended to encourage healthier lifestyles and promote public health.
“Ito naman may patungkol sa kalusugan. Mas maganda maiwasan kung tayo magkukonsume ng napakatamis ng mga kakanin o pagkain o inumin (These measures are related to public health. It would be better if we avoid consuming excessively sweet food and drinks),” she said.
The DOF’s proposed ProGRESS bill seeks to increase the personal income tax exemption from PHP250,000 to PHP350,000. It also proposes exempting micro and small enterprises from the minimum corporate income tax.
While these tax relief measures are expected to benefit Filipinos, the DOF estimates revenue losses of PHP5.96 billion from the minimum corporate income tax and PHP61.06 from the higher personal income tax exemption.
To offset the projected revenue losses, the DOF is proposing to increase the sweetened beverage tax to PHP20 per liter for sugar and PHP40 per liter for high-fructose corn syrup.
The proposal also includes a unified excise tax rate of PHP72.90 on e-cigarettes starting in 2027, with 5-percent indexation beginning 2028; an excise tax of PHP150 per unit on e-cigarette devices, heated tobacco products, vapes, and other novel tobacco devices, likewise subject to 5-percent annual indexation starting 2028; and an excise tax of PHP72.9 per 2 grams or per 2 ml of novel tobacco products. (PNA)
