By Aubrey Rose A. Inosante, A reporter
PHILIPPINE business groups are there urging lawmakers to pass a general tax amnesty and review value-added tax (VAT) on electricity as part of their 2026 tax wish list.
British Chamber of Commerce Philippines Executive Chairman Chris Nelson said the group supports Senate Finance Committee Chairman Sherwin T. Gatchalian’s proposal to pass a general tax amnesty.
“This gives an opportunity for potential taxpayers have unpaid or outstanding debts so that they can move forward in peace,” he said while speaking on the phone BusinessWorld.
The measure is on the wish list of President Ferdinand R. Marcos, Jr. out of 20th Congress. Bills calling for a one-time general tax amnesty have been introduced in both the Senate and the House of Representatives and are pending at the committee level.
Senate Bill No. 60, filed in July by Mr. Gatchalian, intends to grant a one-time waiver of the unpaid internal income tax for the year 2024 and previous years.
The move aims to give delinquent taxpayers a “fresh start” while broadening the government’s tax base and strengthening it.revenue management.
Mr. Nelson also called for tax reform, especially the 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 at 90 million people, although it is now closer to 120 million, and warned that restrictions on food imports risk price increases.
The European Chamber of Commerce of the Philippines (ECCP) also pressed lawmakers to expedite key measures, including “the passage of the General Tax Amnesty to broaden the tax base and encourage voluntary compliance.”
Chief Secretary Ralph G. Recto earlier said the government is preparing a tax amnesty to deal with the conditions imposed in 2019, when then President Rodrigo R. Duterte repealed the general tax amnesty under Republic Act No. 11213 but he kept the real estate tax amnesty.
The International Monetary Fund has dismissed the administration’s proposed tax amnesty, saying it could reduce voluntary tax compliance.
Meanwhile, the ECCP has also supported key bills approved by the Legislative Development Advisory Council, including amendments to the Bank Deposit Concealment Act and the Anti-Money Laundering Act.
Amendments to the bank secrecy law allow the Bangko Sentral ng Pilipinas to audit bank accounts.ficers and employees involved in illegal financial activities. The House of Representatives has passed this measure third and final reading.
“To ensure the full and effective implementation of the CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximus Opportunities for Reinvigorating the Economy) Act, the Capital Markets Efficiency Promotion Act, and the proposed Mining Fiscal Regime, in order to provide investors with a stable, predictable, and competitive framework,” said the financial organization.
The ECCP said investor confidence can be improved by expanding renewable energy incentives, creating a carbon credit facility, and ensuring a sustainable mining finance law that will place the Philippines in a key mineral supply chain.
SORRY TO THE SENDERS
Meanwhile, Philippine ExportPresident of ers Confederation, Inc. Sergio R. Ortiz-Luis asked for a one-time amnesty for exporters in their cases with the Bureau of Customs.
“What we would like is an amnesty from Customs. Since its establishment, Customs has never had an amnesty unlike the BIR (Bureau of Internal Revenue),” he said in his phone call on December 23.
“This would help erase cases that cannot be prosecuted and allow a one-time amnesty to clean up records. Besides, these cases could be a source of graft,” said Mr. Ortiz-Luis.
He also noted the high cost of electricity and fuel in the Philippines, which is much higher than that of its neighboring countries.
“Perhaps it is time to remove taxes (on electricity) so that the cost of electricity will decrease,” said Mr. Ortiz-Luis in Filipino.
Likewise, Philippine Chamber of Commerce and Industry (PCCI) President Enunina V. Mangio wants the government to revise the VAT on electricity.
“We have also asked for a review of VAT on electricity as this directly affects inflation, household consumption and business costs,” he said in a Viber message.
Finance Secretary Karlo Fermin S. Adriano earlier said the government collected an estimated P44 billion to P45 billion in VAT through 2024.
“In 2026, PCCI’s tax priorities focus on measures that reduce the cost of doing business, improve predictability, and strengthen our country’s competitiveness in the region,” said Ms. Mangio.
The group said it will continue to monitor the progress of the legislation and, hopefully, it will be signed into law as an important legislative step by Mr. Marcos.
Meanwhile, the German-Philippine Chamber of Commerce and Industry (GPCCI) said that improving and reforming tax administration is important, rather than introducing new incentives and laws, and should be among the government’s priorities to strengthen the country’s investment climate by 2026.
“The necessary laws, circulars and incentive structures are already in place. What investors need most is clarity, predictability, and consistent implementation,” GPCCI President Marie Antoniette E. Mariano said in a statement. BusinessWorld.
Mrs. Mariano said that the reliable application of existing laws greatly improves the confidence of investors.
Earlier, the Marcos administration promised not to introduce new taxes.
DIGITALIZATION
At the same time, business groups are lobbying for broader government digitization as delays and uncertainty persist. to challenge in this country and abroad firms.
“What is more important is to speed up full digitization and administrative reforms that make tax compliance easier than introducing new ways to raise capital that can dampen investment. emotions,” said Ms. Mangio.
ECCP urged the government to speed up the issuance of online invoices and support the passage of the Digital Payments Act.
He said these are important for improving tax administration, improving compliance, and reducing the cost of doing business.
“We are very committed to digitalization. With that, we would like to see how the system can be done to reduce paperwork and obstacles. I think the government is committed,” said Mr. Nelson.
He added that electronic invoicing, one of the initiatives, will capture transactions in real time and speed up processes.
The GPCCI called for more transparent digitization, including fewer administrative requirements, faster tax rulings, and faster dispute resolution.
“Transparent and well-managed tax audits, accompanied by effective dispute resolution methods, benefit taxpayers and governments alike, playing an important role in improving the competitiveness of countries,” said Dr. Marian Majer, Policy Chair and Advocate of GPCCI.
The Executive Director of the American Chamber of Commerce in the Philippines Ebb Hinchliffe said another priority will be to track e-invoicing and digital compliance.
“Support the BIR’s digital roadmap for 2024-2028 while ensuring the efficient issuance of electronic invoices,” he said in a Viber message.
EXCESSIVE SERVICES
ECCP reiterated its announcement to reconsider Revenue Memorandum Circular (RMC) No. 05-2024, laying down the tax administration.development of cross-border services.
“If left unchanged, the issuance could significantly increase compliance costs and prevent cross-border service providers from operating or expanding in the Philippine market,” it said.
GPCCI has raised concerns about cross-border activities, citing uncertainty under RMC No. 5‑2024 and the backlog of tax treaty decisions. It urged the government to prioritize clearing the backlog, and provide “clear guidance on the tax treatment of these transactions to reduce the risk of compliance with investors.”
The group said resolving these issues would reduce compliance risks and strengthening foreign investment.
