4 Dawlah gunmen killed in Maguindanao del Norte clash

March 17, 2025 | 9:44 pm

COTABATO CITY — Personnel of an anti-terror Philippine Marine unit shot dead four members of the outlawed Dawlah Islamiya in an encounter in Barira, Maguindanao del Norte before dawn Monday.

The encounter in Sitio Palao in Barangay Barira in the upland Barira town erupted when Dawlah Islamiya gunmen opened fire on members of the Marine Battalion Landing Team-2, dispatched to check on reports by residents about their presence in the area.

Army Major Gen. Donald M. Gumiran, commander of the 6th Infantry Division told reporters on Monday afternoon that he is thankful to officials of the 1st Marine Brigade for acting promptly on reports by villagers about their sightings of Dawlah Islamiya members in their surroundings.

Community leaders had told reporters that the companions of the four Dawlah Islamiya members killed in the clash scampered away when they sensed that Marine and police reinforcements were closing in. They were seen carrying three wounded companions as they fled, according to traditional ethnic Iranun elders in Barira.

The Marines and barangay officials who responded to the incident found two assault rifles, ammunition and more than a dozen 40-millimeter grenade projectiles scattered at the scene of the encounter, left by the retreating Dawlah Islamiya gunmen. — John Felix M. Unson

Peso drops slightly as market awaits Fed review

March 17, 2025 | 9:00 pm

THE PESO weakened slightly against the dollar on Monday amid cautious trading as the market looks ahead to the US Federal Reserve’s meeting this week, where it is expected to keep rates steady but provide fresh guidance on their policy stance moving forward.

The local unit closed at P57.30 per dollar on Monday, declining by 4.9 centavos from its P57.251 finish on Friday, Bankers Association of the Philippines data showed.

The peso opened Monday’s session stronger at P57.20 against the dollar. Its intraday best was at P57.175, while its worst showing was at P57.31 versus the greenback.

Dollars traded went down to $1.02 billion from $1.39 billion on Friday.

“The dollar-peso closed a bit lower but moved mostly sideways on cautious trading ahead of the FOMC (Federal Open Market Committee) meeting later this week. Some are betting they will cut because of the weaker data recently, but most are expecting it in June,” a trader said in a phone interview.

The US central bank will review its policy settings on March 18-19. Fed policy makers are universally expected to leave rates in their current 4.25%-4.5% range when they meet this week, and traders are also betting against a rate cut at their May meeting, Reuters reported.

Investors will pay particularly close attention to the Fed’s own projections for inflation, unemployment and the path of rates, due to be published at the end of their two-day policy-setting meeting. In December, Fed policy makers forecast two interest-rate cuts this year.

Pricing of short-term interest-rate futures still reflects an expectation for a June start to Fed rate cuts, with likelier than not a total of three quarter-point reductions by the end of the year.

The peso was also dragged down by higher global crude oil prices recently, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Tuesday, the trader expects the peso to move between P57.10 and P57.40 per dollar, while Mr. Ricafort sees it ranging from P57.20 to P57.40.

The US dollar hovered close to a five-month low against its major peers on Monday, pressured by President Donald J. Trump’s erratic trade policies and a run of soft macroeconomic data, Reuters reported.

The US dollar index, which measures the currency against the six major counterparts, was little changed at 103.71 early in the Asian morning — A.M.C. Sy with Reuters

PSEi rises to 6,300 level on China stimulus plan

March 17, 2025 | 9:00 pm

THE MAIN INDEX climbed to the 6,300 level on Monday, tracking gains of other Asian markets, as sentiment was lifted by China’s planned stimulus measures.

The Philippine Stock Exchange index (PSEi) rose by 0.19% or 12.08 points to end at 6,306.19 on Monday, while the broader all shares index inched up by 0.03% or 1.22 points to 3,722.82.

“The local market managed to extend its climb this Monday… The bourse rose further, joining its regional peers, as China revealed a special action plan to boost its economy’s consumption,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Philippine shares built on the sentiment from Friday, managing to close above the 6,300 level,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

China’s State Council unveiled on Sunday what it called a “special action plan” to boost domestic consumption, featuring measures including increasing residents’ income and establishing a childcare subsidy scheme, Reuters reported.

The plan comes as levels of consumer demand in China have suffered various setbacks in recent years, due to factors such as COVID-19 disruptions and a prolonged property slump, chilling the propensity of households to spend and adding to deflationary trends.

The plan was issued to all regions and departments to “vigorously boost consumption, expand domestic demand in all directions, improve consumption capacity by increasing income and reducing burdens,” a report from the Council said.

Pressure has been building on Chinese officials for consumer-focused stimulus measures to fend off deflationary pressures and reduce the world’s second-largest economy’s reliance on exports and investment for growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.9%, while Japan’s Nikkei advanced 0.93%.

Majority of sectoral indices closed lower on Monday. Mining and oil declined by 0.65% or 58.55 points to 8,882.48; property went down by 0.59% or 13.32 points to 2,216.14; industrials dropped by 0.35% or 31.19 points to 8,722.47; and financials decreased by 0.26% or 6.44 points to 2,428.46.

Meanwhile, services increased by 1.57% or 32.27 points to 2,084.76 and holding firms advanced by 0.40% or 21.26 points to 5,232.14.

“Converge ICT Solutions, Inc. was the top index gainer, climbing 3.83% to P17.34. Bloomberry Resorts Corp. was the main index laggard, falling 3.55% to P3.53,” Mr. Tantiangco said.

Value turnover declined to P5.26 billion on Monday with 1.33 billion shares traded from the P6.32 billion with 785.67 million issues exchanged on Friday.

Advancers narrowly beat decliners, 94 versus 92, while 59 names were unchanged.

Net foreign buying went down to P357.25 million on Monday from P365.15 million on Friday. — Revin Mikhael D. Ochave with Reuters

Duterte-related unrest risks delays to reform legislation

March 17, 2025 | 8:21 pm

House-congress — PHILIPPINE STAR/KJ ROSALES

POLITICAL instability stemming from the arrest of former President Rodrigo R. Duterte could disrupt the progress of key legislative reforms, ING Bank said.

In a report, ING Regional Head of Research for Asia-Pacific Deepali Bhargava said: “From a policy perspective, there’s a possibility that the implementation of certain reforms that were recently passed gets delayed,” Ms. Bhargava said.

ING cited recent Senate bills seeking to lower the tax on stock transactions and proposed fiscal mining regime.

“These bills were seen to be financial market-friendly but could be delayed with the renewed focus on politics,” she said.

Mr. Duterte, who led the Philippines from 2016 to 2022, was arrested last week on charges of crimes against humanity. He faced the International Criminal Court (ICC) in a pre-trial session on Wednesday.

The push to raise minimum wages by P200 could also be derailed, “pushed to the back burner” in the face of the political turmoil, she added.

Earlier this year, a House of Representatives committee approved on second reading a bill that seeks to grant a P200 across-the-board wage increase for private-sector workers.

However, ING does not expect the arrest to have any significant impact on the overall economy.

“From the markets’ perspective, we do not expect the political climate to impact the macro stability narrative, given that our forecasts suggest contained inflation and moderating fiscal deficits.”

ING also noted the potential spillovers on the midterm elections, which will be “crucial,” following the impeachment proceedings against Vice-President Sara Duterte-Carpio.

“To avoid her removal as Vice-President and maintain her eligibility to run for president in 2028, the Duterte family needs their allies to secure seats in the Senate,” she said.

“This suggests that political unrest might continue, as the outcome of Ms. Duterte’s impeachment trial and the potential shifts in Senate power will keep both the public and the media intensely focused on the unfolding drama.”

The House of Representatives impeached Ms. Duterte before it went on a four-month break on Feb. 5. The allegations against her include misuse of secret funds, unexplained wealth, acts of destabilization and plotting the assassination of the President, the First Lady and the Speaker. — Luisa Maria Jacinta C. Jocson

Pork sellers largely ignoring MSRP — DA

March 17, 2025 | 8:20 pm

pork-meat-vendor — PORK meat products are sold at the Murphy Market in Cubao, Quezon City, Feb. 11, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

THE Department of Agriculture (DA) said compliance with the maximum suggested retail price (MSRP) for pork has been spotty over a week after the scheme took effect.

The compliance rate among about 170 retailers monitored by the DA was 20%, Agriculture spokesman Arnel V. de Mesa told reporters.

Retailers have failed to comply with the MSRP because the price set by traders remains high, he said, even though the farmgate price for hogs has decreased.

On March 10, the MSRP was set at P380 per kilo for liempo (belly) and at P350 per kilo for kasim (shoulder) and pigue (rear leg).

The DA has also imposed a maximum suggested price of P300 per kilo for sabit ulo, the price at which traders pass on pork to retailers.

Pork sold in so-called “modern markets” such as supermarkets and hypermarkets is exempt from the MSRP scheme due to their higher operating costs.

Mr. De Mesa said farmgate prices have fallen to as little as P220.

“So, why can’t it reach P300 when in fact they agreed that the profit margin for viajeros (traders) should be P70 pesos?” he said.

The government first applied the MSRP approach to rice.

Mr. De Mesa said the DA was expecting the pork MSRP to be more broadly observed because hogs need to be sold in markets immediately after they are butchered.

“It’s not like rice that you can store for a longer time,” he said.

The level of compliance after the first week of the MSRP for rice was 40-45%.

Mr. De Mesa said prevailing prices remain high for pork belly (P420 per kilo) and rear leg (P380). — Kyle Aristophere T. Atienza

Ajinomoto Philippines sees food industry posting steady growth, revenue rising by double digits

March 17, 2025 | 8:19 pm

AJINOMOTO Philippines Corp. (APC) said the food industry is expected to post “steady” growth this year, driving a double-digit rise in its sales.

“We do not reveal this information officially, but I can say (it will be) more than double-digit (growth). As you can imagine, the food industry is not an up-and-down business; it is a very steady business,” Koichi Ozaki, president of Ajinomoto Philippines, said, on the sidelines of a briefing on Monday.

In particular, he said that the company’s sales in the Philippines is expected to outpace the growth rate of the overall food and beverage industry, which he estimated at less than 10%.

“Now the driving force is, of course, our main business, which is the seasoning segment, which is growing steadily. But in addition to that, our other businesses are also our growth drivers,” he added.

Aside from seasoning products, APC also recently launched frozen food such as gyoza (dumplings), karaage (deep fried chicken) and instant soup preparations.

According to Mr. Ozaki, the Philippines is among Ajinomoto’s top markets within ASEAN in terms of sales. Its top market in the region is Thailand.

On Monday, APC launched the Ajinomoto Shared Value (ASV) program, which seeks to reduce the company’s environmental footprint by 50% and help increase global life expectancy by 2030.

The company “recognizes responsibility for how we impact the environment. Our ASV signifies our role is beyond providing Filipinos with key products that enhance taste in our food — it highlights our commitment to environmental stewardship,” Mr. Ozaki said.

The company has transitioned its two factories to renewable energy (RE) in partnership with ACEN Renewable Energy Solutions.

The company currently has two factories in the Philippines, located in Bulacan and Cebu, and employs 2,000 workers.

“The two factories are now being powered by 100% RE, significantly lowering their scope 2 carbon emissions, which prevents around 5,000 metric tons of carbon dioxide emissions per year,” the company said.

In partnership with FAST Logistics and MOBER Philippines, the company is also seeking greener logistics in its warehouse transfers and product deliveries. — Justine Irish D. Tabile

Domestic trade declines by value, volume in Q4 due to typhoons

March 17, 2025 | 8:19 pm

DOMESTIC TRADE in goods by value posted a double-digit decline in the fourth quarter after multiple typhoons disrupted economic activity, the Philippine Statistics Authority (PSA) said, citing preliminary data.

According to the PSA’s Commodity Flow in the Philippines report, the value of trade goods in the quarter fell to P246.22 billion from P326.56 billion a year earlier.

The PSA said domestic trade by value is the outflow value of commodities transported from the place of origin to the place of destination.

Commodity flow includes goods transported by water, air, and rail, with waterborne goods the dominant segment.

The volume of trade declined 25.9% year on year to 6.23 million tons.

“The slowdown in domestic trade can be attributed to natural calamities during the last quarter that have negatively affected supply chains in the country,” Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc. said in an e-mail.

Mr. Erece added that subdued demand caused by global economic uncertainty and higher inflation expectations also slowed domestic trade in the fourth quarter.

In December, headline inflation accelerated to 2.9% year on year from 2.5% in November.

This brought 2024 inflation to 3.2%, in line with the central bank’s target.

Six typhoons between October and November caused more than P22 billion in damage, according to the National Disaster Risk Reduction and Management Council.

Of the 10 commodity groups monitored by the PSA, seven groups declined by value.

These were machinery and transport equipment, down 59.5%, followed by animal and vegetable oils, fats and waxes (-47.2%); food and live animals (-19.4%), beverages and tobacco (-14.7%); mineral fuels, lubricants and related materials (-10.2%); chemicals and related products (-7.8%); and crude materials, inedible, except fuels (-1.5%).

Commodity groups posting growth were manufactured goods classified chiefly by material (25.8%), miscellaneous manufactured articles (9%), and commodities and transaction not classified elsewhere in the PSCC (5.7%).

Food and live animals accounted for the most value among traded commodities at P72.07 billion during the period.

The category accounted for 29.3% of the value of domestic trade in the fourth quarter. Machinery and transport equipment amounted to P47.48 billion (19.3%), and manufactured goods classified by material P45.15 billion (18.3%).

The National Capital Region accounted for the most goods traded by value with 53.3%. Outflows amounted to P131.31 billion and inflows P24.29 billion, resulting a surplus of P107.02 billion.

The value of inflows into the Western Visayas was P46.63 billion or 18.9% of the total.

Mr. Erece said that a rebound is expected in domestic trade, driven by easing inflation and expectations of higher government spending in the runup to the elections.

Inflation cooled to 2.1% in February, the weakest reading in five months. — Pierce Oel A. Montalvo

PHL, UK start joint trade committee talks

March 17, 2025 | 8:17 pm

London-Tower Bridge, The Shard — REUTERS

THE PHILIPPINES and the UK on Monday embarked on their first Joint Economic and Trade Committee (JETCO) meeting in London, the Department of Trade and Industry (DTI) said.

“We are just reinforcing our trade and economic ties through the JETCO mechanism,” Bureau of International Trade Relations Director Marie Sherylyn D. Aquia said via Viber.

She said that the Philippines is hoping that the JETCO will cover “infrastructure, energy, agriculture, trade promotion, and investment promotion.”

British Chamber of Commerce Philippines (BCCP) Executive Chairman Chris Nelson said that the JETCO is a reflection of how the UK and the Philippines see the trade going.

“It’s going to be increasing; it’s already reached 2.8 billion pounds, and there are a lot more opportunities. So this is a very encouraging start. I think from the Philippines, Trade Undersecretary Alan Gepty has gone to London,” Mr. Nelson said by phone.

“You have got to look at this as an overall increase in relations. And it follows on from the work we have been doing at the British Embassy,” he added.

He said JETCO signifies an upgrade of trading relations.

“The UK launched about two years ago the Developing Countries Trading Scheme (DCTS). Trade has continued to grow between the two countries, obviously due to the work of the embassy, business and trade, and also ourselves, the British Chamber,” he added.

The Philippines is currently a participant in the UK’s DCTS, which gives duty-free access to 92% of its product lines entering the British market.

“I’m sure it (the JETCO) would cover those under DCTS. I mean, I am not there at the discussions, but I am sure they are going to discuss all possible areas of cooperation,” he said.

The BCCP hopes the UK and the Philippines will also discuss priority legislation.

“For example, we’d like to see the Cybersecurity Act passed because we think that’s very important,” he said.

“We also want to see e-governance, as this will further improve the opportunities. If ease of doing business improves, this will, in our opinion, increase and assist in terms of investments coming into the country. So, we’re hoping that JETCO will also touch on that,” he added.

The DTI’s Export Marketing Bureau reported that total trade between the UK and the Philippines was $1.18 billion in 2024. The UK was the Philippines’ 23^rd leading trading partner last year. — Justine Irish D. Tabile

Crackdown looms for fake cosmetics sold online

March 17, 2025 | 8:16 pm

THE Intellectual Property Office of the Philippines (IPOPHL) said it has tied up with the Chamber of Cosmetics Industry of the Philippines (CCIP) to clear out counterfeit cosmetics from online platforms.

In a statement on Monday, IPOPHL said that it signed an e-commerce memorandum of understanding (MoU) with CCIP to work against the sale and marketing of counterfeit cosmetic products online.

“Through this MoU, the CCIP and its members will now be part of the collective drive of protecting both the cosmetics industry and the health and safety of the public,” IPOPHL Director General Brigitte M. da Costa-Villaluz said.

“This collaboration is a protective measure so that cosmetics products, from skincare to makeup, can be availed of by people around the world not only for their high quality but also for their authenticity,” she added.

The signing follows the partnership entered into by IPOPHL and CCIP in 2023 which centered on policing intellectual property (IP) violations.

CCIP President Christine Michelle P. Reyes said that the industry’s continuous growth makes it susceptible to online counterfeits.

“As the rise of e-commerce platforms has led to the rapid spread of counterfeit goods online, brands have difficulty in protecting their intellectual property due to damage to brand reputation and elevated risks to consumer safety from the sale of unsafe or substandard products,” she said.

The MoU brings together online platforms, brand owners, industry associations, and chambers of commerce with the aim of establishing a code of practice for online businesses, enhancing collaboration among signatories, and implementing notice and takedown procedures.

“Originally conceived as a stopgap measure, the MoU has proven to be an effective tool that gives us a fighting chance against IP violators who flood platforms with fake cosmetic products,” IPOPHL Deputy Director General Nathaniel S. Arevalo said.

“The MoU complements the goals of the Internet Transactions Act and has been recognized as a best practice within the ASEAN region,” he added.

To date, the e-commerce MoU has 65 signatories. — Justine Irish D. Tabile

Calamity funds worth P21 billion still unused

March 17, 2025 | 8:15 pm

Typhoon-Paeng-flood — PHILIPPINE STAR/EDD GUMBAN

THE Department of Budget and Management said P21 billion worth of calamity funds remain unused as of the end of February, including P20 billion in the National Disaster Risk Reduction and Management Fund and P1 billion in the People’s Survival Fund (PSF).

At the end of February 2024, disbursals had amounted to P1.95 billion, leaving P19.17 billion unused.

The PSF is intended for local government units and accredited community organizations to pursue climate change adaptation projects. — Aubrey Rose A. Inosante

FPA taking new approach in regulating biofertilizers

March 17, 2025 | 8:14 pm

THE Fertilizer and Pesticide Authority (FPA) said its oversight of biofertilizers will be “developmental,” easing the permit process to hasten their greater adoption.

It said the new regulatory approach applies to “emerging products” such as biofertilizer, biopesticide and bio stimulants, FPA Office-in-Charge and Executive Director Glenn DC. Estrada told reporters.

He noted that Southeast Asia has been embracing biofertilizer in light of the rising prices of inorganic fertilizer following the Russia-Ukraine war.

Biofertilizer gained traction in the Philippines in 2022 when the Department of Agriculture (DA) promoted a balanced fertilization program, Mr. Estrada noted.

“We are taking on the developmental side of the regulations,” he said, “rather than being too restrictive about it.”

The FPA has registered multiple biofertilizer products and is seeking to further ease the application process by going paperless.

Product registrations with the agency typically take over a year to process, Mr. Estrada noted.

“We started with fertilizer (applications); perhaps in a matter of six months, we can also do digital payments,” he said.

Mr. Estrada said the FPA is working with government and private laboratories to harmonize how they test fertilizers and pesticides.

“It’s a laboratory recognition program, so anywhere you can test (the product),” he said, noting that the agency only has one laboratory.

The FPA said it is seeking P1 billion over three years to establish more locally accesible facilities.

The FPA budget is about P200 million, of which P115 million goes to personnel, Mr. Estrada noted. — Kyle Aristophere T. Atienza

A new tax reform measure for the capital markets

March 17, 2025 | 8:14 pm

Philippine taxation has undergone significant changes with the enactment of several tax reforms in 2024. These reforms include the Ease of Paying Taxes Act (RA No. 11976), the Real Property Valuation Act (RA No. 12001), the VAT on Digital Services (RA No. 12023), and the CREATE MORE Act (RA No. 12066), which generally aims to modernize the current tax system, making it simpler, fairer, and more efficient.

Following the signing of the bicameral conference report by Congress, another significant tax reform is on its way: the Capital Market Efficiency Promotion Act (CMEPA), which consolidated Senate Bill No. 2865 and House Bill No. 9277. The CMEPA is designed to simplify the complex taxation of passive income in the Philippines. It also seeks to align and promote our capital markets within the context of financial globalization, increased international mobility, and financial inclusion.

Here, we summarize the key proposed amendments under the CMEPA Bill:

STANDARDIZED THE FINAL WITHHOLDING TAX (FWT) RATE ON INTEREST INCOME
One of the major shifts in CMEPA is the standardization of the FWT on interest income at 20%, except for non-resident aliens not engaged in trade or business (NRA-NETB) and non-resident foreign corporations (NRFC), whose interest income will still be subject to 25% FWT. This change effectively removes the preferential final tax rates for:

• 15% on interest income earned by Foreign Currency Deposit Units (FCDUs)

• Tax-exempt status on interest income of non-residents from FCDUs

• Tax-exempt status on long-term deposits and investments

While the proposed final tax rate aims to address the inequitable distribution of the tax burden between investors who can invest in long-term savings and individuals who can only put money into savings deposits, the removal of preferential rates of FCDUs could make the Philippines less appealing to foreign investors, potentially affecting sources of foreign currency and our capital markets.

CAPITAL GAINS TAX ON THE SALE OF SHARES ISSUED BY FOREIGN CORPORATIONS
Currently, capital gains on sales of unlisted local shares of individuals and corporations are subject to 15% capital gains tax (CGT), while gains on sales of foreign shares are subject to the progressive income tax rate for individuals and the corporate income tax rate for corporations. The CMEPA Bill seeks to remedy the disparity by imposing the same tax rate of 15% CGT on the sale of shares issued by foreign corporations not traded on a stock exchange.

While the change might be beneficial for high net-worth individuals (HNWI) and corporations as it lowers the tax rate imposed on the gains on sales of unlisted foreign shares, this might have an unfavorable effect on our capital markets as the shift might make investing in domestic companies less attractive. Further, it is worth noting that CGT must be paid first before transferring ownership of the unlisted domestic shares, whereas there are still no clear regulations on how the transfer of unlisted foreign shares will be monitored.

LOWERING THE STOCK TRANSACTION TAX (STT)
To align the Philippines’ Stock Transaction Tax (STT) with the prevailing rates in other ASEAN-6 economies, CMEPA proposes reducing the STT on the sale or other disposition of shares of stock listed and traded through the stock exchange from 0.6% to 0.1% of the gross selling price or gross value in money of the shares. The proposed amendment also applies to shares of stock of domestic corporations listed and traded through a foreign stock exchange. The reduction aims to lower transaction costs in trading, making it more attractive for both domestic and foreign investors.

LOWERING THE DOCUMENTARY STAMP TAX ON THE ORIGINAL ISSUANCE OF SHARES
Existing rules provide for a documentary stamp tax (DST) on debt instruments and bonds at P1.50 of P200 (0.0075%), while the DST imposed on the original issuance of shares is P2.00 of 200 (0.01%). To equalize the cost of investing in bonds and equity shares and encourage the companies to raise capital through the stock market, the CMEPA Bill reduced the DST on the original issuance of shares from 0.01% to 0.0075%.

INCENTIVES ON MUTUAL FUNDS AND UNIT INVESTMENT TRUST FUNDS
To promote investing in several collective investment schemes (CIS), CMEPA grants income tax exemption for gains from redemption of a unit of participation in a mutual fund and a Unit Investment Trust Fund (UITF). It also removes DST on the original issuance, redemption, or other disposition of shares in mutual funds and the issuance of certificates or other evidence of participation in mutual funds and UITFs. However, these tax incentives do not extend to VUL products, despite being part of CIS.

ADDITIONAL DEDUCTION OF 50% ON EMPLOYER’S CONTRIBUTION TO PERA
The Personal Equity and Retirement Account (PERA) Act, which was introduced in 2008 to strengthen our capital markets, has faced several challenges that have hindered its widespread utilization in the Philippines despite its several tax incentives. To address the issue, CMEPA encourages private employers to increase their contribution by providing an additional 50% deduction on the employer’s contribution, provided that such contribution is at least equal to the contribution of their employees.

CMEPA represents a pivotal moment for the Philippine capital markets. By simplifying the tax rates on certain passive income and significantly reducing the transaction costs on investments, CMEPA is expected to increase participation in the stock market, boost trading activity, increase market liquidity, and enhance the country’s competitiveness in the global financial markets.

However, the success of these reforms will still depend on how well they resonate with the investors and how effectively the government implements the tax reforms. Will CMEPA become the breakthrough the Philippine market needs, or will it take time for both the government and investors to adapt to the changes?

While the full impact of CMEPA remains to be seen, one thing is certain — the future of the Philippine capital market is on the cusp of a major transformation, and this is just the beginning.

Marielle C. Baldemor is a senior in-charge for the Tax Advisory & Compliance Practice Area of P&A Grant Thornton. Tweet us: @GrantThorntonPH, Facebook: P&A Grant Thornton

pagrantthornton@ph.gt.com

www.grantthornton.com.ph