THE Securities and Exchange Commission (SEC) said Tuesday it supports the proposed bill to reduce taxes on stock transactions to boost and improve the competitiveness of the Philippine capital market.
Albay 2nd District Rep. Jose Ma. Clemente Salceda on Aug. 23 filed House Bill No. 8958, or the proposed Capital Markets Efficiency Promotion Act, that seeks to lower taxes on stock transactions to attract more investors into the market.
Under the proposed bill, stock transaction tax (STT) will go down to 0.1 percent of the stock value from 0.6 percent. The tax on dividends of foreign non-residents will also be reduced to 10 percent from 25 percent.
“The SEC welcomes the efforts of our legislators to boost the capital market, as this recognizes the contribution and potential of the financial sector to help in the development of the Philippine economy, toward easing and improving the lives of all Filipinos,” SEC chairperson Emilio Aquino said in a statement.
“We will work closely with our lawmakers to ensure that new laws and policies will be reflective of the needs and demands of the market and investors, while still balancing the Commission’s role as regulator,” he said.
The bill has undergone deliberations at the committee level and was substituted by House Bill 9277.
Salceda, who heads the House ways and means committee, expressed hope that the lower taxes would bring the local capital market at par with regional counterparts, and encourage more local and foreign investors to participate in Philippine trading.
The SEC said it was also crafting plans to introduce institutional changes to help develop and further deepen the Philippine capital market,
It recently shortened the settlement cycle from three days to two days after the trade date by amending the 2015 implementing rules and regulations of RA 8799, or the Securities Regulation Code, through SEC Memorandum Circular No. 11, Series of 2023.