The Department of Finance (DOF) has opened nationwide consultations on the proposed ProGRESS Bill, putting its next tax reform package before businesses, taxpayers, and other stakeholders as the government refines the measure ahead of its legislative push.
Around 300 representatives from business, government, academe, civil society, and the media joined the first consultation in Manila on Wednesday, providing an initial forum to examine the proposed mix of tax relief and revenue-raising measures.
The Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability, or ProGRESS, Bill seeks to balance lower taxes for individuals and small businesses with measures designed to strengthen government revenues.
Among its proposed relief measures is raising the annual personal income tax exemption threshold to P350,000 from P250,000 and exempting micro and small enterprises from the minimum corporate income tax.
To offset part of the revenue impact, the package proposes higher excise taxes on vehicles worth more than P8 million and other non-essential goods, while expanding coverage to private sea vessels and aircraft.
The bill also proposes a 15-percent Global Minimum Tax on large multinational enterprise groups and adjustments to the Motor Vehicle Road Users’ Charge.
The DOF said feedback gathered from consultations nationwide will be consolidated and considered as it refines the proposal, allowing concerns over costs, implementation, and the distribution of the tax burden to be addressed before the bill is finalized.
“We will continue to dialogue with our stakeholders and carefully consider their concerns as we refine ProGRESS,” DOF Undersecretary Karlo Fermin Adriano said.
The consultations move to Batangas City on Sept. 11, extending the discussion beyond Metro Manila as the DOF seeks broader input on a tax package designed to deliver relief while keeping government revenues on a sustainable footing.
