A coalition of labor and business groups is urging the government to review—and potentially suspend—value-added tax (VAT) on essential goods, warning that sustained price increases are straining both households and enterprises.
Members of the Leaders Forum, including the Employers Confederation of the Philippines, Federation of Free Workers, Philippine Chamber of Commerce and Industry, Philippine Exporters Confederation, Inc., Sentro ng mga Nagkakaisa at Progresibong Manggagawa, and the Trade Union Congress of the Philippine, outlined in a joint statement 9 priority measures aimed at easing mounting economic pressures.
At the center of the proposal is a targeted review and possible suspension of VAT on fuel, electricity, and basic commodities to provide immediate relief to consumers and businesses.
“Workers and employers may come from different sectors, but we face the same reality: rising costs of essential goods are placing unsustainable pressure on livelihoods and businesses,” the groups said.
The coalition noted that workers are facing eroding real wages as prices of food, transport, and utilities climb, while businesses—particularly micro, small, and medium enterprises—are grappling with higher input costs and softening demand.
Beyond VAT relief, the groups called for stricter enforcement to ensure any tax reductions are passed on to consumers through lower prices. They also urged lawmakers to certify as urgent a measure raising the tax-exempt income ceiling to boost workers’ take-home pay.
Additional recommendations include time-bound fiscal interventions for sectors with windfall gains, expanded social dialogue with government, and targeted support for vulnerable sectors.
The coalition emphasized the need for a calibrated fiscal approach that safeguards government revenues while keeping essential goods affordable, warning that prolonged cost pressures could weigh on economic stability and growth.
