President Ferdinand “Bongbong” Marcos Jr. on Tuesday led a ceremonial bell-ringing at the Philippine Stock Exchange (PSE), marking the formal implementation of a landmark tax reform law designed to boost investor participation and modernize the country’s capital markets.
Mr. Marcos celebrated the signing of the Capital Markets Efficiency Promotion Act (CMEPA), which he enacted into law in May 2025, as a “new phase of economic opportunity for every Filipino.”
The law, he said, not only aims to expand access to financial investments but also strengthens long-term economic stability.
“This reform is not just for the well-off and the professionals,” he said during his speech at the PSE event. “It is for every Filipino who dreams of better financial security,” the president added.
CMEPA slashes the stock transaction tax from 0.6 percent, previously the highest in ASEAN, to just 0.1 percent.
The president highlighted that a first-time investor buying P10,000 worth of stocks will now pay just P10 in taxes instead of P60, making equity investments more attractive to ordinary Filipinos.
The law also removes the documentary stamp tax on mutual funds and unit investment trust funds, financial instruments popular among young professionals and middle-income savers.
In addition, it simplifies tax compliance by implementing a uniform 20 percent final tax on interest income and encourages private sector retirement savings through tax incentives.
Employers who match or exceed their employees’ Personal Equity and Retirement Account (PERA) contributions will now receive a 50 percent additional tax deduction on their contributions.
Meanwhile, previously exempt government-owned or controlled corporations (GOCCs) will now be subject to the same passive income tax rates as private institutions to promote tax fairness.
The Department of Finance projects that CMEPA will generate P25 billion in net revenue by 2030, funds that will support infrastructure and social programs such as roads, schools, and hospitals.
Present at the ceremony were Finance Secretary Ralph Recto, Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go, Senator Sherwin Gatchalian, one of the law’s principal authors, PSE Chairman Jose Pardo, and PSE President Ramon Monzon.
President Marcos also issued a directive to the Securities and Exchange Commission (SEC) to streamline procedures, remove bureaucratic bottlenecks, and reduce transaction costs” to accelerate implementation.
“Let every ring, from this morning and every trading day thereafter, echo our strength, our optimism, and our shared hope for a more prosperous future for all Filipinos,” the president said.
He concluded by urging stakeholders to uphold “transparency, fairness, and good governance,” emphasizing that market integrity is a shared responsibility.
The reform, Mr. Marcos said, enhances the country’s competitiveness in Southeast Asia and empowers small investors, from overseas Filipino workers to young entrepreneurs, to be active participants in the nation’s economic growth.
