By Erika Mae P. Sinaking, Reporter
PRESIDENT Ferdinand R. Marcos, Jr. on Monday asked Congress to pass a package of tax measures, including broader income tax exemptions for low- and middle-income earners and tax exemptions for micro, small, and medium enterprises, as he laid out his administration’s legislative priorities for the rest of his term.
In his fifth State of the Nation Address (SONA), Mr. Marcos also sought congressional approval of measures updating the country’s tax system, alongside bills that will amend the National Constructing Code, modernize the 25-year-old Ecological Solid Waste Management Act and establish a law to make rooftop solar panels and battery storage systems more accessible to households.
“To make sure the continued progress of the center class amidst the lingering effects of the crisis, we’ll pursue tax relief measures that promote growth, generate revenue and advance equity toward socioeconomic sustainability,” he said in his speech that lasted an hour and 26 minutes.
Mr. Marcos said that the proposed tax reforms aim to guard the purchasing power of Filipinos who have felt the brunt of world economic volatility.
He called for the expansion of the present income tax framework to incorporate more staff within the tax-exempt bracket.
“As a singular protection for them and so that they can profit more from their hard-earned income, I call on Congress to pass the law that can provide partial relief for our tax payments,” Mr. Marcos said.
“First, allow us to expand the exemption for income tax. Allow us to increase the variety of staff who might be exempt from taxes on their income. We’ll include those earning not greater than P350,000 per yr,” he said.
This move could be accompanied by reduction within the income tax rates for other staff to make sure a fairer distribution of the tax burden.
He proposed a “one-time tax abatement” for microentrepreneurs to supply relief to those whose earnings have suffered through the recent period of economic hardship.
“Second, small businesses will now not be subjected to the minimum corporate income tax,” he said.
The President pushed for a comprehensive tax amnesty covering unpaid income, estate, donor’s, and value-added taxes, including the waiver of associated penalties.
The fiscal space for these reforms is being carved out through a rigorous anti-corruption campaign, particularly throughout the Department of Public Works and Highways.
AMENDMENTS TO EPIRA SOUGHT
Also, Mr. Marcos called on lawmakers to approve a bill removing system loss charges from consumers’ electricity bills, saying the measure would complement the administration’s planned tax relief package by lowering electricity costs for households and businesses.
“It isn’t the fault of consumers why there are system losses. So, it isn’t right that customers must pay for this. Subsequently, we, the people, request — no, we demand for the immediate amendment of the EPIRA (Electric Power Industry Reform Act), and to ban charging system loss against consumers including the value-added tax thereon,” he said in Filipino, receiving a standing ovation from the audience.
Mr. Marcos also pushed for the passage of the “Sariling Kuryente” Act to make the installation of rooftop solar panels and battery storage systems in homes “easy, easy, and reasonably priced.”
The President said the federal government would proceed directing funds to education, healthcare, food security and infrastructure, citing savings from its campaign against corruption, including irregular flood control projects.
Mr. Marcos reiterated support for the Public Utility Vehicle Modernization Program, saying its implementation could be “humane, reasonably priced and just.”
He also reaffirmed the federal government’s goal of getting electric vehicles (EV) account for half of all vehicles within the country by 2040 while supporting investments across the EV value chain, including vehicle assembly, battery manufacturing and related parts.
He also announced that the 12 stations of the Metro Rail Transit (MRT) Line 7 will open by next yr. “After nearly three many years, there might be a brand new MRT line extending to Sacred Heart, Quezon City, from North Avenue. And someday, it would reach all of the method to San Jose Del Monte, Bulacan,” he added.
Mr. Marcos also touted the planned Pax Silica industrial hub, which he says would “bring quality jobs to our people, speed up our industrial competitiveness and revitalize our economy.”
“Allow us to proceed the work that we’ve got began, to make the Philippines the country that Filipinos deserve,” the President said.
‘CHALLENGE IS EXECUTION’
Meanwhile, Management Association of the Philippines President Donald Patrick L. Lim said the group is inspired by Mr. Marcos’ strong emphasis on key priorities corresponding to job creation, food security, reasonably priced energy, and support for small businesses, amongst others
“The challenge now could be execution. Businesses are searching for clear implementation timelines, policy consistency, and shut collaboration between government and the private sector. We hope Congress will quickly translate these priorities into laws where needed, while the Executive ensures that programs are implemented efficiently and their advantages are felt by peculiar Filipinos,” Mr. Lim said in a Viber message.
Ederson DT. Tapia, a political science professor on the University of Makati, told BusinessWorld that Mr. Marcos’ SONA was ambitious and clearly conscious of the immediate concerns of peculiar Filipinos.
“Nevertheless, lots of the commitments were presented as programs fairly than measurable reforms. The foremost test is implementation: clear timelines, funding, accountable agencies and concrete outcomes,” Mr. Tapia said.
“The speech was also notable for what it avoided: impeachment, political dynasties, human rights, budget insertions and deeper institutional reforms. On this sense, it was strong on assistance and aspiration, but less complete on structural political change,” he added.
Federation of Philippine Industries Chairperson Elizabeth H. Lee welcomed the President’s directive to lower power costs, saying it’s “essential to placing Philippine manufacturing on equal footing with our ASEAN (Association of Southeast Asian Nations) peers.”
“Paired with long-term energy security — through nuclear exploration, natural gas, hydrogen, and renewables — these reforms can construct true industrial resilience,” she said in a Viber message.
1000’s of protesters from labor, teachers, youth, urban poor and other sectoral groups marched along Commonwealth Avenue for the people’s SONA, presenting what they described because the country’s “true state of the nation” ahead of the President’s speech.
The demonstrators called for higher wages, increased funding for education and social services and greater government accountability, while criticizing the administration over corruption, poverty, militarization and foreign influence. — with Beatriz Marie D. Cruz and Kaizzer Angela Marie V. Manuba