By Erika Mae P. Sinaking, A reporter
PRESIDENT Ferdinand R. Marcos, Jr On Monday he asked Congress to pass the package of tax measures, including comprehensive income tax exemptions for low and middle income earners and tax exemptions for small, medium and small businesses, as he lays out his administration’s legislative priorities for the remainder of his term.
In his fifth State of the Nation Address (SONA), Mr. Marcos also sought congressional approval for measures to revise the country’s tax system, as well as bills that would amend the National Building Code, modernize the 25-year-old Ecological Solid Waste Management Act and legislate to make rooftop solar panels and battery storage systems more accessible to homes.
“To ensure the continued progress of the middle class amid the continuing effects of the crisis, we will pursue tax cuts that promote growth, generate income and advance equity in social and economic sustainability,” he said. His speech lasted an hour and 26 minutes.
Mr. Marcos said the proposed tax reforms aim to protect the purchasing power of Filipinos felt responsible for the global economic instability.
He called for the income tax bracket to be expanded to include more workers in the tax-exempt bracket.
“As a unique protection for them and so that they can enjoy more of their hard-earned money, I call on Congress to pass a law that will provide partial relief from our tax payments,” said Mr. Marcos.
“First, let’s increase the income tax exemption, let’s increase the number of workers who will not pay tax on their income, we will also include those who earn more than P350,000 a year,” he said.
This move will be accompanied by a reduction in the income tax rates of other workers to ensure a fair distribution of the tax burden.
He proposed a “one-time tax cut” for small businesses to provide relief to those whose incomes have suffered during the recent economic crisis.
“Secondly, small businesses will no longer be charged a small business income tax,” he said.
The President pushed for a comprehensive tax amnesty covering unpaid income, estate, donor tax, and additional taxes, including the waiver of related penalties.
The financial space for these changes is evident in the strong anti-corruption campaign, especially in the Department of Public Works and Highways.
AMENDMENTS TO THE SEARCH OF EPIRA
Also, Mr. Marcos asked lawmakers to approve a bill that removes the cost of system losses from conconsumer electric bills, ie the measure will complement the administration’s planned tax relief package by lowering the electricity costs for households and businesses.
“It is not the fault of the consumers why there is a system loss. Therefore, it is not right for the consumers to pay for this. Therefore, we, the people, are asking – no, we want an immediate amendment of the EPIRA (Electric Power Industry Reform Act), and prohibiting the charging of the system loss to the consumers including the value-added tax there,” he said, getting the Filipino audience to stand.
Mr. Marcos also pushed for the passage of the “Sariling Kuryente” Act to enable the installation of solar panels on roofs and battery storage systems in homes “easy, simple, and affordable.”
The President said the government will continue to direct funds to education, health, food security and infrastructure, citing savings in its anti-corruption campaign, including unorganized flood control programs.
Mr. Marcos also reiterated his support for the Public Utility Vehicle Modernization Program, saying that its implementation will be “humane, affordable and just.”
He answered againfemphasized the government’s goal of electric vehicles (EV) being a part of all vehicles in the country by 2040 while supporting investment in the entire EV value chain, including vehicle assembly, battery production and related components.
He also announced that 12 stations of Metro Rail Transit (MRT) Line 7 will be opened next year. “After almost three decades, there will be a new MRT line that reaches Sacred Heart, Quezon City, from North Avenue. And one day, it will reach all the way to San Jose Del Monte, Bulacan,” he added.
Mr. Marcos also praised the Pax Silica planned industrial zone, which he said will “bring quality jobs to our people, accelerate our industrial competitiveness and revitalize our economy.”
“Let’s continue the work we have started, to make the Philippines a country worthy of the Filipino people,” said the President.
‘THE CHALLENGE IN THE MAKING’
Meanwhile, the President of the Management Association of the Philippines Donald Patrick L. Lim said that the group is encouraged by Mr. Marcos on key priorities such as job creation, food security, affordable energy, and small business support, among others
“The challenge now is to act. Businesses want clear implementation timelines, policy consistency, and close government-private partnerships. We hope Congress will quickly translate these priorities into law when needed, while the Executive ensures that plans are implemented.”fsurprisingly and their benefits are felt by ordinary Filipinos,” Mr Lim said in a Viber message.
Ederson DT. Tapia, a professor of political science at the University of Makati, said BusinessWorld that the SONA of Mr. Marcos was ambitious and clearly responsive to the current concerns of ordinary Filipinos.
“However, many commitments are presented as plans rather than measurable changes. The biggest test is implementation: clear timelines, funding, accountable agencies and tangible results,” said Mr. Tapia.
“This speech was also notable for what it avoided: impeachment, political generations, human rights, budgeting and deep institutional changes. In this sense, it had the power of help and ambition, but not complete in political change,” he added.
Federation of Philippine Industries Chairwoman Elizabeth H. Lee welcomed the President’s admonition to lower electricity costs, saying “it is important to put Philippine manufacturing on an equal footing with our ASEAN (Association of Southeast Asian Nations) peers.”
“Combined with long-term energy security – through nuclear testing, natural gas, hydrogen, and renewables – these changes can create true industrial resilience,” he said in a Viber message.
Thousands of protesters from labor, teachers, youth, urban poor and other sectors marched on Commonwealth Avenue in the SONA of the people, presenting what they described as “the real state of the country” before the President’s speech.
Protesters called for higher wages, increased funding for education and social services and greater government accountability, while criticizing the administration for corruption, poverty, war and foreign influence. – with Beatriz Marie D. Cruz again Kaizzer Angela Marie V. Manuba
