Metro Manila (CNN Philippines, July 24) – President Ferdinand Marcos Jr. bared a number of measures he wants to enact and amend during his second State of the Nation Address on Monday.
Let’s take a look at legislation his administration intends to prioritize in his second year in office.
Tax reforms:
Excise tax on single-use plastics
In 2022, the House of Representatives approved on third and final reading a bill seeking to impose excise tax on plastic bags.
House Bill 4102, or the Plastic Bags Tax Act, aims to impose a ₱100 excise tax per kilogram on plastic bags to urge companies to find other environment-friendly alternatives. The measure was a consolidation of two related bills authored by Albay Rep. Joey Salceda, Sultan Kudarat Rep. Horacio Suansing, and Nueva Ecija Rep. Mikaela Angela Suansing.
Value-added tax on digital services
House Bill 4122, a measure seeking to impose a 12% value-added tax on non-resident digital service providers such as Spotify and Netflix were approved in the House in November last year.
The bill clarifies the imposition of VAT on electronic or digital services such as digital advertising, subscription-based services, and other services using information communication technology (ICT)-enabled infrastructure, among others.
Rationalization of mining fiscal regime
According to the Department of Finance, it will increase government share by imposing a fiscal regime applicable to all mining agreements.
The proposed legislation refiled by Joey Salceda in the 19th Congress also seeks to encourage full public disclosure on extractive industries.
Motor vehicle user charge
In 2019, a measure that would impose a yearly 33% percent increase in motor vehicle user’s charge for the next three years was filed by Salceda.
Salceda said the proceeds would be used to fund the Universal Health Care Law.
Military and uniformed personnel pension
President Marcos earlier said that he backs the proposal to reform the pension system for the military and other uniformed personnel.
Finance Secretary Benjamin Diokno said the pension given to MUP retirees is around nine times higher than the amount given to those from the private sector.
Proposed amendments:
Fisheries Code
During his speech, Marcos urged Congress to amend the fisheries law to further protect fisherfolk and aquatic resources.
Marcos said the amendment must guarantee sustainable development of the fisheries sector in harmony with environmental balance.
Anti-Agricultural Smuggling Act
Marcos, in his SONA, also warned agricultural smugglers and hoarders that their days are now numbered.
He attributed the rising commodity prices to smugglers and hoarders that are affecting the lives of both farmers and consumers.
He then urged Congress to amend the Anti-Agricultural Smuggling Act.
Cooperative Code
Marcos said amending the Cooperatives Code will have stronger production capacity and market force.
The president also urged lawmakers to pass two measures that involve procurement and auditing to be “more attuned to these changing times.”
Marcos’ priority bills also include anti-financial account scamming that will help deter cybercrime and other issues on phishing as well as the Tatak Pinoy law that will put emphasis on local enterprises.
The blue economy law, an economic model that seeks sustainable utilization of ocean resources, and the Philippine Immigration Act were also mentioned.
He also said income classification of local government units, a bill that is now up for debate on the Senate floor, was among his priority measures.
