A party-list lawmaker has filed a bill to abolish the estate tax in the Philippines, saying that the levy is a minimal revenue generator and an excessive burden on ordinary Filipino families.
Rep. Nathaniel Oducado of the 1Tahanan Party-list filed House Bill No. 6563, or the Estate Tax Abolition Act of 2025, which aims to fully remove the tax on inherited properties, eliminate filing requirements and streamline the transfer of assets.
Oducado said that despite reforms, including a reduced 6 percent rate under the TRAIN Law, estate tax collections have consistently remained below 0.5 percent of national revenues.
Collections averaged only P7 billion annually out of the government’s P4.419 trillion revenue collection in 2024.
“The low collection rate, coupled with the high administrative cost of compliance, raises questions about the continued relevance of the estate tax,” Oducado said.
He said the current tax has created a heavy burden, often leaving families unable to transfer, develop, or use inherited properties as collateral.
This results in “frozen” or untitled lands that prevent families from unlocking their economic value.
“Hirap ka nang mabuhay, hirap ka ding mamatay—this is the reality for many Filipinos who struggle to pay estate tax just to access what their parents left behind,” Oducado said.
By eliminating the tax, the proposed measure seeks to unfreeze dormant assets, improve land markets, support access to credit and help families build intergenerational wealth.
Oducado noted that international experience shows removing similar taxes results in minimal fiscal impact, with revenue losses offset by increased economic activity and collections from other taxes.
The 1Tahanan representative appealed for the immediate passage of the measure to provide relief, particularly to poor Filipino families, and to align the country with global best practices.
