ECOP, in a statement, stressed that the proposed tax reform has the potential to support household financial management among workers and reinforce consumer activity
The Flame
The proposed ProGRESS tax reform package of the Marcos administration continues to undergo refinement, following President Ferdinand Marcos Jr.’s call more than two months ago for expanded personal income tax relief to ease the burden of rising living costs on millions of Filipino workers.
The Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) package aims to ease the burden on Filipino workers by increasing their take-home pay while ensuring that government services remain funded through complementary revenue measures.
The package’s core provision involves raising the annual personal income tax exemption threshold from P250,000 to P350,000, complemented by adjustments to tax brackets designed to reduce the tax burden on eligible employees.
According to the Employers Confederation of the Philippines (ECOP), the proposed tax reform could help workers manage household finances and boost consumer spending.
“Employees are dealing with higher living expenses, and any measure that allows them to retain more of their earnings would be welcome. Additional take-home pay can help families meet their daily needs and, at the same time, support businesses through stronger consumer spending,” ECOP said in a statement.
The employers’ group also stressed the importance of identifying long-term funding mechanisms to support the planned tax reductions.
“We recognize that the government must balance tax relief with its revenue requirements. What is important is to establish a clear and workable timetable so that workers and employers know when they can expect these adjustments to take effect,” it added.
The group previously endorsed the administration’s tax relief initiatives but underscored the need to address potential fiscal repercussions, including additional government debt.
The Marcos administration has set 2026 as its target for passing the ProGRESS tax reform package, but further progress depends on congressional action.
According to Department of Finance (DOF) estimates, more than six million workers could benefit from the proposed tax changes, with eligible taxpayers potentially saving as much as P17,500 annually.
Beyond personal income tax relief, the ProGRESS package also proposes exempting micro and small enterprises from the minimum corporate income tax, potentially easing their financial burden.
President Marcos called for broader tax relief during his State of the Nation Address in July, with Malacañang later clarifying that the administration aims to secure passage of the package by 2026.
In September, Malacañang renewed its support for ProGRESS, stressing that the measure aims to strengthen government revenues while providing meaningful tax relief to workers.
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