The Philippines Department of Finance has begun nationwide consultations on the ProGRESS Bill, which proposes higher personal income tax exemptions and relief for small businesses alongside new taxes on luxury goods and a 15% global minimum tax for large multinational groups.
The Philippines Department of Finance (DoF) launched consultations on the ProGRESS Bill in Manila on 3 September 2026, gathering roughly 300 stakeholders from business, government, academics, civil society, and media to review the tax reform package.
Personal income relief and small business support
The bill proposes raising the annual personal income tax exemption from PHP 250,000 to PHP 350,000, which would save individual taxpayers up to PHP 17,500 per bracket. Micro and small enterprises would gain exemption from minimum corporate income tax, a move intended to reduce the tax burden on smaller operators.
Revenue measures targeting luxury goods and multinationals
To offset lost revenue, the DOF introduced higher excise taxes on vehicles priced above PHP 8 million and expanded luxury goods taxation to include private sea vessels and aircraft. The package also establishes a 15% Global Minimum Tax on large multinational enterprise groups operating in the Philippines, aligning the country with international standards and protecting domestic tax revenue.
Infrastructure and health funding
Motor Vehicle Road Users’ Charge (MVUC) rates that remained unchanged for over 20 years would be adjusted to reflect inflation and rising road maintenance costs. Revenue from excise tax increases on luxury and non-essential goods would fund Universal Health Care implementation and other priority government programmes.
Karlo Fermin Adriano, Undersecretary of the Fiscal Policy and Monitoring Group, stated that stakeholder feedback would shape revisions to the bill.
The DoF plans to continue regional consultations, with the next discussion scheduled for 11 September 2026 in Batangas City.
