‘Tax holiday won’t fix corruption, public trust issues’

MANILA, Philippines — A proposed one-month tax holiday may offer short-term relief, but will not help address concerns about corruption and governance, which are necessary to restore public trust, according to business groups.

“We appreciate Sen. (Erwin) Tulfo’s intention to provide temporary relief to the public amid ongoing concerns on corruption and governance. However, lasting confidence comes from fighting corruption and ensuring transparency, not just temporary tax breaks,” Philippine Chamber of Commerce and Industry president Enunina Mangio told The STAR.

“A tax holiday may boost spending briefly, but stable governance and accountability are what truly sustain business and investment confidence,” she also said.

Employers Confederation of the Philippines president Sergio Ortiz-Luis Jr. said in a telephone interview that in his personal view, implementing a tax holiday is not suitable at this time.

“Everybody would like exemption from tax, but I don’t think it’s appropriate. I don’t think it will help the corruption issue,” he said.

While the bill was filed to provide direct financial relief to workers, Ortiz-Luis said he does not see any advantage in it for Filipinos angered by corruption in flood control projects.

“We’ll have to leave it to the executive department,” he said.

Earlier, Special Assistant to the President for Investment and Economic Affairs Frederick Go said the proposed month-long income tax holiday needs to be studied thoroughly.

“This is quite a big matter and I think it’s best to give the DOF (Department of Finance) and the DBM (Department of Budget and Management) time to carefully study this proposal,” he said.

Senate Bill 1446 or the One-Month Tax Holiday of 2025 seeks to provide a one-month income tax exemption to individual taxpayers receiving compensation income.

Under the proposed measure, the tax holiday would take effect on the first payroll month immediately after the bill’s approval.