President Ferdinand Marcos Jr. wants Congress to pass the proposed Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) bill before the end of the year, Malacañang said Tuesday.
Palace Press Officer Claire Castro said the Department of Finance (DOF) is still finalizing the measure, which combines tax cuts and new taxes aimed at increasing government revenue while providing relief to workers and small businesses.
“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,” Castro said during a press briefing.
Under the proposal, workers earning up to P350,000 a year would no longer pay personal income tax, up from the current tax-exempt threshold of P250,000. Micro and small businesses would also be exempted from paying the minimum corporate income tax.
The government estimates these tax cuts would reduce state revenues, prompting the DOF to propose higher taxes on products considered harmful to health or the environment.
These include increasing the tax on sweetened beverages to P20 per liter for drinks containing sugar and P40 per liter for those using high-fructose corn syrup.
The proposal also seeks higher excise taxes on electronic cigarettes, vape products, heated tobacco products and related devices beginning in 2027, with annual increases starting in 2028.
Castro said the proposed tax changes are not expected to burden ordinary Filipinos, particularly middle-income earners, noting that some measures will mainly affect luxury goods.
“So, hindi naman po ang middle income ang usually maapektuhan ng binabalak po na mga tax reform,” she said.
She added that the proposed taxes on sugary drinks, single-use plastics and vape products are also intended to discourage unhealthy consumption 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,” Castro said.
According to the DOF, the ProGRESS bill is expected to generate about P191.77 billion to offset the revenue losses from the proposed tax relief measures. Between 2027 and 2030, the package is projected to raise P518.71 billion while funding tax reductions estimated at P326 billion.
