MANILA: Philippine President Ferdinand Marcos Jr. has proposed sweeping tax relief measures to ease the financial burden on middle-class workers and small businesses grappling with the lingering economic effects of the Middle East crisis.
In his fifth State of the Nation Address (Sona) 2026, Marcos said the government must not take the middle class and small business sector for granted as global uncertainties continue to weigh on their livelihoods.
“To ensure the continued progress of the middle class amidst the lingering effects of the Middle East crisis, we will pursue tax relief measures to promote growth, generate revenue, and advance equity toward socio-economic sustainability,” he said.
Marcos urged Congress to pass legislation that would provide tax relief, allowing workers and entrepreneurs to keep more of their hard-earned income while strengthening the country's economic resilience.
The proposed reforms include expanding income tax exemptions to cover individuals earning up to ₱350,000 a year, reducing income tax rates for other wage earners, and exempting small businesses from the minimum corporate income tax.
The administration is also proposing a tax amnesty programme covering unpaid income tax, estate tax, donor's tax and value-added tax (VAT), as well as related penalties and surcharges.
Marcos said the measures are aimed at supporting economic resilience, encouraging business growth and creating a more sustainable and equitable tax system.- Inquirer/ANN
