MANILA, Philippines – The Department of Finance (DOF) kicked off its nationwide stakeholder consultations on the proposed Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) Bill on Wednesday in Manila, bringing together around 300 representatives from the private sector, government, academe, civil society organizations (CSOs), and the media to discuss the proposed tax reform package.
Held at LANDBANK Plaza, the first leg of the consultations marks the beginning of the DOF’s broad stakeholder engagement to gather inputs, hear concerns, and further strengthen the proposed legislation.
The proposed ProGRESS Bill seeks to provide meaningful tax relief, while strengthening the government’s revenue capacity to support essential public services and the country’s long-term development objectives.
Providing relief where it’s needed
Among the proposed measures is the increase in the annual personal income tax exemption threshold from PHP 250,000 to PHP 350,000, which is expected to benefit millions of individual taxpayers with a potential tax savings of up to PHP 17,500 per bracket.
The package also proposes exempting micro and small enterprises from the minimum corporate income tax (MCIT), providing additional support to smaller businesses.
Promoting healthier and sustainable communities
To ensure fiscal sustainability, the ProGRESS Bill also includes revenue-enhancing measures on products with social, environmental, and health costs, promoting healthier and more responsible communities. Revenues generated from these measures will help support the implementation of the Universal Health Care (UHC) Act and other priority programs of the government.
Making taxation fairer
In addition, the proposed ProGRESS Bill promotes a more equitable tax system by aligning tax contributions more closely with the ability to pay, particularly for ultra-luxury and non-essential goods.
The proposal seeks to impose a higher excise tax on vehicles valued above PHP 8 million, while increasing the tax on other non-essential goods and expanding its coverage to include private sea vessels and aircraft.
The package also proposes a 15% Global Minimum Tax (GMT) on large multinational enterprise groups, ensuring that the Philippines collects its fair share of taxes on income earned in the country and helping preserve its taxing rights.
Meanwhile, the proposed update to the Motor Vehicle Road Users’ Charge (MVUC) seeks to adjust rates that have remained unchanged for more than two decades, taking into account inflation and the rising costs of maintaining the country’s road infrastructure.
Building ProGRESS together
In the coming weeks, the DOF will bring the consultations to different parts of the country, engaging stakeholders beyond Metro Manila and ensuring that various perspectives are incorporated into the policy-making process.
The inputs gathered from the nationwide consultations will be consolidated and considered in refining the ProGRESS Bill.
“We will continue to dialogue with our stakeholders and carefully consider their concerns as we refine ProGRESS. Our goal is for the final legislation to strike the right balance—support our people and businesses, strengthen our fiscal position, and build a more inclusive and resilient economy,” DOF-Fiscal Policy and Monitoring Group (FPMG) Undersecretary Karlo Fermin Adriano said.
Building on the momentum of the Manila launch, the DOF is set to expand its nationwide consultation drive to Southern Luzon. The next leg of discussions will take place in Batangas City on September 11, 2026, at the PonteFino Hotel.
The nationwide consultation underscores the Marcos Jr. administration’s commitment to pursuing tax reforms through transparency, stakeholder engagement, and evidence-based policymaking—ensuring that reforms strengthen the economy while promoting a fairer and more sustainable tax system for all Filipinos.
