Business groups bare ‘tax wish list’ for 2026

Philippine business groups are urging lawmakers to pass a general tax amnesty and review the value‑added tax (VAT) on electricity as part of their tax wish list for 2026.

British Chamber of Commerce Philippines Executive Chair Chris Nelson said the group supports the proposal of Senate Finance Committee Chair Sherwin T. Gatchalian to pass a general tax amnesty.

“This gives the opportunity for those taxpayers who may have unpaid or outstanding liabilities to move forward amicably,” he said during a phone call with BusinessWorld.

The measure is among President Ferdinand R. Marcos, Jr.’s legislative wish list for the 20^th Congress. Bills seeking a one‑time general tax amnesty have been filed in both the Senate and the House of Representatives and are still pending at the committee level.

Senate Bill No. 60, filed in July by Mr. Gatchalian, aims to grant a one-time reprieve on unpaid internal revenue taxes for the taxable year 2024 and prior years.

The measure aims to give delinquent taxpayers a “fresh start” while broadening the government’s tax base and strengthening revenue administration.

Mr. Nelson also called for tariff adjustments, particularly a higher minimum access volume (MAV) quota for pork exports to the Philippines, to ease supply shortages and curb inflation.

He said the Philippines’ MAV quota was set in the 1990s for a population of 90 million, though it is now near 120 million, and warned that limits on food imports risk driving prices higher.

The European Chamber of Commerce of the Philippines (ECCP) also pressed lawmakers to fast-track priority measures, including “the passage of a General Tax Amnesty to broaden the tax base and encourage voluntary compliance.”

Executive Secretary Ralph G. Recto earlier said the government is preparing a tax amnesty to address provisions vetoed in 2019, when then-President Rodrigo R. Duterte struck down the general tax amnesty under Republic Act No. 11213 but retained the estate tax amnesty.

The International Monetary Fund has frowned upon the administration’s proposed general tax amnesty, saying that it could lessen regular voluntary tax compliance.

Meanwhile, the ECCP also backed priority bills endorsed by the Legislative-Executive Development Advisory Council, including amendments to the Bank Deposits Secrecy Law and the Anti-Money Laundering Act.

The amendments to the bank secrecy law allow the Bangko Sentral ng Pilipinas to examine the accounts of bank officers and employees involved in illegal financial activities. The House of Representatives has passed the measure on third and final reading.

“Ensuring the full and effective implementation of the CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) Act, the Capital Markets Efficiency Promotion Act, and the proposed Mining Fiscal Regime, to provide investors with a stable, predictable, and competitive fiscal framework,” the group said.

The ECCP said investor confidence could be boosted by expanding renewable energy incentives, creating a carbon credit facility, and ensuring a stable mining fiscal regime to position the Philippines in the global critical minerals supply chain.

Amnesty for exporters

Meanwhile, Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis called for a one-time amnesty for exporters in their cases with the Bureau of Customs.

“What we would like is an amnesty in Customs. Since its establishment, Customs has never had an amnesty unlike the BIR (Bureau of Internal Revenue),” he said in a phone call on Dec. 23.

“This would help clear cases that cannot be prosecuted and allow a one‑time amnesty to clean up records. Otherwise, these cases can be a source of graft,” Mr. Ortiz-Luis said.

He also noted the high electricity and fuel costs in the Philippines, which are significantly higher than those of its neighboring countries.

“Maybe it’s high time to remove taxes (in electricity) so our electricity costs can go down,” Mr. Ortiz-Luis said in Filipino.

Similarly, Philippine Chamber of Commerce and Industry (PCCI) President Enunina V. Mangio is calling for the government to review the VAT on electricity.

“We also recently called for the review of VAT on electricity as this directly affects inflation, household spending, and business costs,” she said in a Viber message.

Finance Undersecretary Karlo Fermin S. Adriano earlier said the government collected around PHP 44 billion to PHP 45 billion in VAT on electricity in 2024.

“For 2026, PCCI’s tax priorities center on measures that lower the cost of doing business, improve predictability, and strengthen our country’s competitiveness in the region,” Ms. Mangio said.

The group said it will continue to monitor legislative developments and, hopefully, will be signed into law as a priority legislative measure by Mr. Marcos.

Meanwhile, the German-Philippine Chamber of Commerce and Industry (GPCCI) said that enhancing and reforming tax administration is crucial, rather than introducing new incentives and laws, and should be among the government’s key priorities to strengthen the country’s investment climate in 2026.

“The necessary laws, circulars, and incentive frameworks are already in place. What investors need most is clarity, predictability, and consistent implementation,” GPCCI President Marie Antoniette E. Mariano said in a statement to BusinessWorld.

Ms. Mariano said reliable application of existing rules significantly improves investor confidence.

The Marcos administration earlier pledged not to introduce new taxes.

Digitalization

At the same time, business groups are urging for broader government digitalization as persistent delays and uncertainty continue to challenge local and foreign firms.

“Most important is accelerating full digitalization and administrative reforms that make tax compliance easier rather than introducing new revenue-raising measures that could dampen investment sentiment,” Ms. Mangio said.

The ECCP urged the government to accelerate the rollout of e‑invoicing and support the passage of the Digital Payments Act.

She said these are critical to modernizing tax administration, improving compliance, and lowering the cost of doing business.

“We are very much committed to digital transformation. In that respect, we’d like to see how the system can be further digitalized to reduce paperwork and bottlenecks. I think the government has made a commitment,” Mr. Nelson said.

He added that electronic invoicing, one of the initiatives, would capture real‑time transactions and accelerate processes.

GPCCI called for more transparent digitalization, including fewer bureaucratic requirements, faster tax rulings, and quicker dispute resolution.

“Transparent and well-managed tax audits, complemented by efficient dispute resolution mechanisms, benefit the taxpayer and the government alike, play a key role in improving the countries competitiveness,” said Dr. Marian Majer, GPCCI Policy and Advocacy Chairperson.

American Chamber of Commerce in the Philippines Executive Director Ebb Hinchliffe said one of the key priorities would be the fast‑tracking e‑invoicing and digital compliance.

“Support the BIR’s 2024-2028 digital roadmap while ensuring a pragmatic rollout of e‑invoicing,” he said in a Viber message.

Cross-border services

The ECCP also reiterated its call to reconsider Revenue Memorandum Circular (RMC) No. 05-2024, which sets out the tax treatment of cross-border services.

“If left unchanged, the issuance could significantly increase compliance costs and discourage cross-border service providers from operating in or expanding into the Philippine market,” it said.

GPCCI raised concerns over cross‑border transactions, citing uncertainties under RMC No. 5‑2024 and backlogs in tax treaty rulings. It urged the government to prioritize clearing the backlog, and provide “clearer guidance on the tax treatment of such transactions to reduce compliance risks for investors.”

The group said resolving these issues would reduce compliance risks and bolster foreign investment. — Aubrey Rose A. Inosante, Reporter