Philippines Tax Reforms Lead Marcos’s Final Legislative Push

Proposed Philippines tax reforms covering workers, small businesses and energy costs have become central to President Ferdinand Marcos Jr.’s final legislative push.

In his fifth State of the Nation Address, Marcos urged Congress to exempt employees earning up to PHP350,000 (USD5,679) annually from income tax, remove the minimum corporate income tax for micro, small and medium-sized enterprises and approve a one-time tax amnesty.

He also called for amendments to the Electric Power Industry Reform Act that would remove system-loss charges from household electricity bills.

A proposed Sariling Kuryente Act would make rooftop solar installations and battery storage systems more accessible to homes and businesses.

Business groups broadly welcomed the measures, which could increase disposable income, reduce operating costs and encourage small business investment.

However, they cautioned that the economic impact of the reforms would depend on effective legislation, timely implementation and the government’s ability to manage the associated fiscal costs.