President Ferdinand R. Marcos, Jr. and Finance Secretary Ralph G. Recto led the ceremonial bell-ringing at the Philippine Stock Exchange (PSE) on July 1, 2025 to mark the effectivity of the Capital Markets Efficiency Promotion Act (CMEPA), vowing its efficient implementation to unlock broader investor participation and drive inclusive economic growth.

Championed by the Department of Finance (DOF), Republic Act No. 12214, or the CMEPA Act, aims to make the Philippines a more attractive and competitive investment destination by bringing long-awaited reforms to its capital markets.

The law supports President Marcos, Jr.’s goal of driving long-term economic growth by empowering more Filipinos to invest and attracting capital that translates to more jobs, higher incomes, and shared prosperity.

“It [CMEPA] is for every Filipino who dreams of better financial security. It empowers the small business owner, the young professional, the overseas Filipino worker to start investing their hard-earned money to build a better future,” President Marcos, Jr. said in his keynote speech.

“Today, we are building a Philippine capital market that is truly dependable, inclusive, and a robust engine of national development. For investors, this sends a clear message that we are committed to providing a predictable environment for you to prosper in the Philippines. We give you the kind of confidence that only sound policy can deliver. And for ordinary Filipinos, this is a strong signal that our capital market is no longer just for the few—but for the many,” Secretary Recto said.

“We thank Secretary Ralph Recto, without whose support and approval, the bill could not have been passed,” PSE President and CEO Ramon Monzon said in his remarks.

Overall, CMEPA lowers transaction costs, increases market participation, improves liquidity, and boosts capital market growth.

For instance, it reduces the Stock Transaction Tax (STT) from 0.6% to 0.1%, aligning the Philippines with regional markets and making investing in the PSE more cost-competitive.

It also removes the Documentary Stamp Tax (DST) on mutual funds and unit investment trust funds, which are popular investment vehicles among young professionals and middle-class savers.

Furthermore, the law cuts the DST on the original issue of shares of stock from 1% to 0.75%. It imposes a uniform 0.75% DST on bonds, debentures, and certificates of stock or indebtedness issued in foreign countries to ensure equitable taxation of similar financial transactions.

Definitions of “passive income” and “securities” were also clarified to ensure consistent tax treatment.

Additionally, CMEPA standardizes the tax on interest income at 20% to simplify compliance, eliminate confusion, and ultimately level the playing field for all investors.

To encourage retirement savings, private employers that match or exceed their workers’ contributions to the Personal Equity and Retirement Accounts (PERA) are now entitled to an additional 50% tax deduction on their actual contributions.

CMEPA is projected to generate over PHP 25 billion in revenues from 2025 to 2030, which will help support building more roads, bridges, hospitals, schools, and other social safety net programs for Filipinos.

Industry giants throw their full support behind CMEPA

The nation’s top conglomerates came in full support for CMEPA during the historic bell-ringing ceremony, including PLDT Inc. Chairman Manuel V. Pangilinan, San Miguel Corporation Vice Chairman and President and COO Ramon S. Ang, China Banking Corporation Chairman Hans T. Sy, BDO Unibank, Inc. Chair Teresita Sy-Coson, LT Group, Inc. President Lucio Tan III, and Robinsons Retail Holdings, Inc. Chair Robina Gokongwei-Pe.

GT Capital Holdings, Inc. Chairman Francisco C. Sebastian, GT Capital Holdings, Inc. Vice Chairman Alfred V. Ty, DigiPlus Interactive Corp. Chairman Eusebio H. Tanco, and Bank of the Philippine Islands (BPI) President and CEO Jose Teodoro K. Limcaoco were also among the industry giants present.

Government officials present included the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) Secretary Frederick D. Go, Senator Sherwin T. Gatchalian, and Securities and Exchange Commission (SEC) Chairperson Francis Ed. Lim.