Manila: President Ferdinand R. Marcos Jr. is advocating for the swift passage of the Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) bill within the current year, as announced by Malaca±ang on Tuesday.
According to Philippines News Agency, Palace Press Officer Claire Castro stated in a press briefing that the Department of Finance (DOF) is diligently refining the proposed legislation, which is anticipated to generate approximately PHP191.77 billion. This revenue is intended to counterbalance the financial impact of planned tax relief measures.
When questioned about President Marcos's awareness of the bill's specifics and whether he would classify it as urgent, Castro explained that the proposal remains under examination. "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 remarked.
The DOF has projected that while the tax package might necessitate PHP326 billion in funding, it could also yield around PHP518.71 billion from 2027 to 2030. Castro reassured the public that these tax reforms would not impose a burden on ordinary Filipinos, including those in the middle-income bracket. She emphasized that the reforms would primarily target luxury goods like high-end vehicles.
Castro also addressed concerns about proposed higher taxes on sugary drinks, single-use plastics, and vape products, explaining that these measures aim to encourage healthier lifestyles and enhance 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 added.
The DOF's ProGRESS bill proposal includes increasing the personal income tax exemption from PHP250,000 to PHP350,000 and exempting micro and small enterprises from the minimum corporate income tax. While these relief measures are expected to benefit Filipino citizens, the DOF predicts revenue losses of PHP5.96 billion from the minimum corporate income tax and PHP61.06 billion from the elevated personal income tax exemption.
To mitigate these revenue losses, the DOF suggests raising the tax on sweetened beverages to PHP20 per liter for sugar and PHP40 per liter for high-fructose corn syrup. The proposal also advocates for a unified excise tax rate of PHP72.90 on e-cigarettes beginning in 2027, with a 5-percent indexation starting in 2028. Additionally, an excise tax of PHP150 per unit on e-cigarette devices, heated tobacco products, vapes, and other novel tobacco devices is proposed, also subject to 5-percent annual indexation beginning in 2028. An excise tax of PHP72.9 per 2 grams or per 2 ml of novel tobacco products is included in the proposal.
