By Ruth Abbey Gita-Carlos | Philippine News Agency
President Ferdinand R. Marcos Jr. wants the proposed Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) bill passed within the year, Malacañang said Tuesday.
In a press briefing, Palace Press Officer Claire Castro said the Department of Finance (DOF) continues to refine the proposed measure that is expected to generate around P191.77 billion to offset the revenue losses from planned tax relief measures.
Asked whether President Marcos Jr. is aware of the bill’s provisions and if he would certify it as urgent, Castro said the proposal remains under review.
“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,” she said.
When asked about the DOF’s estimate that the package would require P326 billion in funding while generating around P518.71 billion from 2027 to 2030, Castro assured the public that the proposed tax reforms would not burden ordinary Filipinos, including middle-income earners.
She noted that some of the proposals would primarily affect luxury goods, such as high-end vehicles.
“So, hindi naman po ang middle income ang usually maapektuhan nang binabalak po na mga tax reform,” Castro said.
The Palace official also stressed that the proposed higher taxes on sugary drinks, single-use plastics and vape products are intended to encourage healthier lifestyles 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,” she said.
The DOF’s proposed ProGRESS bill seeks to increase the personal income tax exemption from P250,000 to P350,000. It also proposes exempting micro and small enterprises from the minimum corporate income tax.
While these tax relief measures are expected to benefit Filipinos, the DOF estimates revenue losses of P5.96 billion from the minimum corporate income tax and P61.06 from the higher personal income tax exemption.
To offset the projected revenue losses, the DOF is proposing to increase the sweetened beverage tax to P20 per liter for sugar and P40 per liter for high-fructose corn syrup.
The proposal also includes a unified excise tax rate of P72.90 on e-cigarettes starting in 2027, with 5-percent indexation beginning 2028; an excise tax of P150 per unit on e-cigarette devices, heated tobacco products, vapes, and other novel tobacco devices, likewise subject to 5 percent annual indexation starting 2028; and an excise tax of P72.9 per 2 grams or per 2 ml of novel tobacco products.
