Latest news with #Ferdinand'Bongbong'MarcosJr
GMA Network
17-07-2025
- Business
- GMA Network
20% tax on interest income corrects ‘inequitable' system, says DOF
Banks this month started to implement the uniform 20% final withholding tax (FWT) on interest income, regardless of the term or currency denomination, in line with the passage of the Capital Markets Efficiency Promotion Act (CMEPA), signed into law by President Ferdinand 'Bongbong' Marcos Jr. The measure has gained public attention, perhaps due to confusion as several online posts have circulated online that it imposes a 20% tax on total savings or bank deposits. In a statement, the Department of Finance clarified that only the interest earned from a depositor's savings in a bank is taxed 20%, and not the amount of savings itself. 'Huwag maniwala sa fake news. Maging mapanuri sa mga articles at posts na kumakalat online na ginawa para magpakalat ng maling impormasyon,' the DOF said. (Do not believe fake news. Be critical of articles and posts circulating online that were made to spread false information.) Under CMEPA or Republic Act 122141 signed into law in May, all interest income deposited in banks are charged a 20% withholding tax, which local banks started to implement on July 1, 2025. 'A final tax of 20% is hereby imposed upon the amount of interest yield, or other monetary benefit earned or received from any currency bank deposit, deposit substitute, trust fund, or other similar arrangements,' Section 6 of the measure reads. The passage of CMEPA brought about amendments to several provisions of the National Internal Revenue Code, as it sought to 'harmonize' and simplify taxation of passive income across financial instruments and encourage wider public participation in the country's capital markets. Prior to the uniform rate, taxes were tiered and based on the maturity or lock-in periods — 20% for those less than three years; 12% for three years to less than four years; 5% for four years to less than five years; exemptions for more than five years; and 15% for foreign currency deposit units (FCDUs) or dollars. 'The CMEPA merely corrects this outdated and inequitable system that placed a heavier burden on ordinary Filipinos who do not have the extra cash to put in banks for longer periods,' the Department of Finance (DOF) said in a statement released Thursday. Citing estimates from the Bangko Sentral ng Pilipinas (BSP), the DOF said 99.6% of total deposits were already subject to the 20% tax rate, while 0.4% enjoyed preferential rates. 'This special tax treatment favored depositors who can afford to park their savings in long-term deposits, making the tax unfair for short-term depositors who face liquidity issues and need immediate access to their funds,' the DOF said. The finance department also clarified that the 20% rate will only be imposed on the interests earned, and not on the total savings or bank deposits. 'Hindi binubuwisan ang kabuuang halaga ng perang naka-deposito sa bangko. Sa halip, ang interes lamang na kinikita nito ang binubuwisan (The total amount deposited in banks is not taxed. Instead, only the interest earned is taxed),' it said in a separate post on its Facebook account. The DOF also clarified that the unified rate does not apply to provident savings programs under the Social Security System (SSS) and the Home Development Mutual Fund or Pag-IBIG such as the MP2, which are exempt from tax. Capital markets With the measure, the DOF is optimistic that more individuals will look to the capital markets, as it also reduced the stock transaction tax (STT) rate to 0.1% from 0.6% previously, and the documentary stamp taxes (DST) on original issuance of shares to 0.75% from 1%. It likewise removed the DST on collective investment schemes. It also imposes a uniform 0.75% DST on bonds, debentures, and certificates of stock or indebtedness issued in foreign countries, regardless of jurisdiction, which the government said reinforces neutrality in the tax system. 'These measures are seen to cut transaction costs, encourage market participation and financial planning, boost market liquidity, make the country's equities market regionally competitive, and increase capital market growth,' it said. CMEPA also provides an additional 50% tax deduction to the actual contributions of employers who contribute an amount equal to or greater than their employees' contributions to Personal Equity and Retirement Accounts (PERA). The DOF estimates CMEPA to generate P9.0-billion worth of revenues from 2025 to 2028, the end of the term of the current administration. It is expected to raise P500 million this year; P1.6 billion in 2026; P2.8 billion in 2027; and P4.1 billion in 2028. The government is looking to generate P4.520 trillion in 2025 and P4.983 trillion in 2026 based on the latest report of the Development Budget Coordination Committee (DBCC). — BM, GMA Integrated News
GMA Network
16-07-2025
- Business
- GMA Network
Marcos OKs privatization of North-South Commuter Railway ops
The government's plan to privatize the operations and maintenance (O&M) of the big-ticket North-South Commuter Railway (NSCR) project, which is now under construction, has been approved by the President Ferdinand 'Bongbong' Marcos Jr. The President-chaired Economic Development Council (formerly the National Economic and Development Authority Board) has approved, during its meeting on July 15, the O&M of NSCR under a public-private partnership (PPP) arrangement. In February 2023, the Department of Transportation (DOTr) announced it is intending to hand over the O&M of NSCR along with the Metro Manila Subway Project (MMSP) to the private sector through competitive bidding. The total estimated cost of the O&M contract is P229.32 billion, according to the Department of Economy, Planning and Development (DEPDev). The entire NSCR is a 147.26-kilometer elevated railway line aimed at easing travel across three regions in Luzon, namely Central Luzon, Metro Manila, and CALABARZON. The project is already in advanced stages of construction with pre-operations expected to begin in March 2026 until July 2027. The DEPDev said the concession period for partial operations of NSCR Phase 1 —from Clark International Airport (CIA) to Valenzuela involving 13 stations— is targeted to commence in December 2027 until September 2028. Meanwhile, the concession period for the partial operations of Phase 2 —from Nichols with additional segments from Alabang to Calamba involving 32 stations— will run from October 2028 until December 2031. Full operations are expected to begin in January 2032, it said. 1M commuters The railway project is expected to benefit as many as 800,000 passengers daily in its opening year, eventually serving up to one million commuters, the Economic Planning Department said. NSCR will feature 35 stations, including 31 elevated, three at-grade, and one underground. Its depots will be located in Clark, Valenzuela, and Calamba to support maintenance and operations. The railway project is planned to offer two types of train services —commuter trains, with 51 train-sets each capable of carrying 2,242 passengers and 'Limited Express' trains with seven train-sets accommodating 386 passengers each. The two train services are planned to have travel speeds of 120 to 130 kilometers per hour, reducing travel time from Clark to Calamba to around three hours via commuter service from four hours, while the limited express service will cut travel time from Clark to Alabang to around two hours. 'The North-South Commuter Railway Project is a major step toward faster, greener, and more connected transportation for Filipinos as the system will also be integrated with the Metro Manila Subway. At the same time, it will promote green and commercial development along its corridors,' said DEPDev Secretary and ED Council vice chairperson Arsenio Balisacan. The ED Council also tackled the midterm update of the Philippine Development Plan (PDP) 2023-2028. The midterm update of the PDP 2023-2028 refines and recalibrates the country's key policies, strategies, programs, and legislative priorities to ensure alignment with evolving economic conditions and development goals, according to the DEPDev. The DEPDev said it spearheads the updating process of the Plan at the midpoint of each administration to assess progress and make necessary adjustments to targets and interventions. 'We have learned a lot of lessons from our past experiences and many of these have been reflected in our recent efforts. We will continue to stay on our course to sustain our momentum for the second half of this administration,' said Balisacan. Following the discussions from the Council meeting, DEPDev will be receiving comments from various agencies to finalize the updated Plan, which will be released to the public by the end of July 2025. —VAL, GMA Integrated News
Bangkok Post
09-07-2025
- Politics
- Bangkok Post
Philippines sidelines local languages
In October 2024, the Philippine government, in its management of a linguistically rich and culturally diverse population, decided to make the then-existing Mother Tongue-Based Multilingual Education (MTB-MLE) expire by not signing it. By leaving it unsigned, the passage of RA 12027 now mandates that: "The medium of instruction shall revert to Filipino and, until otherwise provided by law, English, pursuant to Article XIV, Section 7 of the 1987 Constitution. The regional languages shall serve as auxiliary media of instruction." The new legal mandate discontinued the use of the mother tongue as the medium of instruction for students in kindergarten through grade 3, thereby shifting educational approaches for early childhood learning in the country. Such a decision has removed the mandatory use of the mother tongue in the country's early education system. However, the change is more than a pedagogical pivot. This policy change is deeply political, signalling a quiet but callous erasure of the Filipino learners' cultural identity tied to their mother tongue. Notably, the reversal of MTB-MLE reflects the broader systemic neglect of the deaf learners, excluding the usage of Filipino Sign Language (FSL) for inclusive and equitable access to education. Mother Tongue Displaced Despite being perceived as an English-speaking nation in Asia and Asean, the Philippines is indeed home to some 183 living languages. These varied linguistic identities and inclusive national sign language correspondences are believed to carry the soul of a people and the wisdom of the different generations that continued to use them. MTB-MLE wasn't introduced as a policy for nothing. Considered as one of the first to have this kind of language education approach in Asia, the Philippines became a model for its Southeast Asian neighbours. Global research from UNESCO and other institutions points out how a mother tongue-based education, such as the MTB-MLE, "is a tool to improve foundational skills [particularly] in a diverse society [such as the Philippines]." It is indeed surprising why, despite the strong evidence that supports the pedagogical and cultural benefits of MTB-MLE, the current Marcos administration rolled it back. Currency of Labour Although almost six decades apart, Ferdinand 'Bongbong' Marcos Jr's decision to roll back MTB-MLE in 2024 was a move that tied in neatly with his own father's labour export policy, initially implemented in the 1970s. Having framed overseas Filipino workers (OFWs) as "heroes" due to their crucial role in helping construct the Philippine economy via their cash remittances, both governments leaned, and continue to heavily do so, on the Filipino migrant workers. Fully recognising that this economic design would largely depend on the Filipino learners -- a future labour workforce with English language proficiency -- the Philippine government ensured that English language learning was fully enshrined in the country's curriculum. Given that English is not just a language but a currency in today's highly globalised world, allowing it to eclipse the Filipino learners' need for their mother tongue, it is clear that discontinuing MTB-MLE was a political move to produce a country of workers -- call centre agents, nurses, seafarers, among others. By ensuring that Filipino learners can compete with their counterparts in the global labour market, their own government was intentional in shifting the curriculum away from mother tongue education in broad daylight. Colonial Hangover Linguistic genocide emanates from cultural genocide, the move to deprioritise the mother tongue over English, a colonial language. Cultural genocide refers to a deliberate act of suppressing or eliminating a group's language, leading to a forcible assimilation into a dominant culture or economy. This eventually results in language death due to an institutional decision. It is important for the current Marcos government to realise that while it may simply seem that changing the language of instruction is but a matter of a curricular decision, language cannot and should not be simply dismissed as a medium of instruction alone. Every language is a vessel of memory, emotion, imagination and resistance -- one that the Filipinos fiercely fought for against their colonial aggressors. As such, by scrapping MTB-MLE and enacting RA 12027, the government is telling the people that their own language does not matter. When one's mother tongue is consistently excluded from formal institutions such as education, governance, and media, it eventually withers and finally dies. Once it happens, the memories, emotions, and imaginations that came with it will also fade away, never to be recognised and spoken about again by future generations. A cultural erosion as tragic as this policy ignores the Philippines' rich linguistic and cultural diversity. It is a direction that brushes aside the need for an education system that is deeply rooted in its cultural heritage, one that could have been further nurtured by being critical and inclusive. The Philippines celebrated its 127th Independence Day last month, commemorating the day when it was finally freed from colonial rule and foreign domination. However, putting in place RA 12027 serves as a constant reminder that an Independence Day celebration is but a hollow act if the country continues to demonstrate a colonial mentality by way of privileging English in its very own curriculum. Couldn't it have been wiser if the current administration, with a stroke of a pen, had instead prioritised its own country's linguistic sovereignty? Moving Forward Although RA 12027 has already been rolled out, if the current administration is indeed sincere in its effort to bring the country forward, it could still undo its earlier decision. Instead of abandoning MTB-MLE, the current administration could look into the challenges it had earlier met, improve its implementation, and enhance its monitoring and evaluation mechanism. It could also build a stronger, evidence-based multilingual exit model. By having a culturally grounded education system, the country could move forward by incorporating its mother tongue without sacrificing the level of global competence it aspires to have. If other countries are able to do it, why can't we? Because a mother tongue helps form the foundation for a strong cultural identity and a sense of belonging, it also results in people's effective learning and communication. But when communication is impeded because governance decides to kill it in favour of a foreign language, it does not just erase the mother tongue in a classroom. It also makes people illiterate in their very own language. Analiza Perez-Amurao, a recipient of the Linguistic Society of the Philippines' Distinguished Bonifacio P Sibayan Professorial Chair in Applied Linguistics, is an assistant professor at Mahidol University International College. Michael Thomas Nelmida is a transnational linguistic human rights activist and an MA candidate in Human Rights and Democratization at Mahidol University (Thailand) and Gadjah Mada University (Indonesia).
GMA Network
04-07-2025
- Business
- GMA Network
Palace still hopeful of PH upper middle-income status under Marcos rule
Malacañang on Friday expressed hope that the Philippines will still become an upper middle-income country under the administration of President Ferdinand 'Bongbong' Marcos Jr. This, after the World Bank's latest classification for fiscal year 2026 showed that the Philippines remained a lower-middle-income economy, even as its gross national income (GNI) per capita in 2024 stood at $4,470, up from GNI per capita of $4,320 in 2023. GNI per capita measures the country's total income divided by its population. According to Palace Press Officer Undersecretary Atty. Claire Castro, the government has a plan to achieve an upper-middle income status within Marcos' term. 'Ang gagawin ng pamahalaan ay lalong palakasin ang macroeconomic foundation at ipagpatuloy pa po ang mga reporma sa infrastructure, education, innovation at digitalization pati na po ang ease of doing business like the CREATE MORE Act, pati po ang PPP or Private-Public Partnership Code,' Castro said in a palace briefing. (What the government will do is to further strengthen the macroeconomic foundation and continue the reforms in infrastructure, education, innovation and digitalization as well as the ease of doing business like the CREATE MORE Act, and the PPP or Private-Public Partnership Code.) 'So, makakasa po tayo na magiging positibo tayo para po makamit natin at makarating po sa upper middle-income group sa panahon po ni Pangulong Marcos Jr.,' she added. (So, we can hope that we will remain positive in achieving and reaching the upper middle-income status within the term of President Marcos Jr.) The World Bank earlier said that the Philippines' elevation to upper middle-income status might take longer, possibly by 2027. In his first State of the Nation Address (SONA) last July 2022, Marcos revealed his administration's goal for the Philippines to hit a GNI per capita of $4,256 to attain an upper-middle income status by 2024. The timeline to hit the target has been repeatedly adjusted, with Economic Planning Secretary Arsenio Balisacan expressing confidence that the country would move up to become an upper middle-income country by 2026, as he was optimistic that the economy would expand by 6% for the entire year 2025.—LDF, GMA Integrated News
Gulf Today
17-06-2025
- Business
- Gulf Today
Migration experts call for focus on OFWs in Gulf region
A migration specialist has challenged the Ferdinand 'Bongbong' Marcos Jr. Administration to come up with in-depth scholarly research studies regarding the evolution of Filipino contract workers in the Gulf. Froilan Malit Jr. was among four panelists at the 'Bridging Generations, Building Futures: A Forum on Philippine Migration and Diaspora Policy,' which the Philippine Consulate General-Dubai hosted in conjunction with the 127th Philippine Independence Day celebrations on June 12. The forum was attended by a mix of Filipino and half-Filipino third culture university students from around the country, a big number of whom were born-and-raised in the UAE. It was to help them understand their history and future in the Gulf. The keynote speakers were Ambassador to the UAE Alfonso Ferdinand Ver ('Overview of Filipino Migration to the UAE'), Department of Foreign Affairs (DFA)-Office of Migrant Affairs Assistant Secretary Robert Ferrer Jr. ('Philippine Migration Policy'), and Migrant Workers Office-Dubai head Labour Attache in Dubai and the Northern Emirates John Rio Bautista ('Government Protection Mechanisms for Overseas Filipino Workers.') Malit discussed 'Filipino Diaspora Contributions in the Gulf Region.' Former Philippine Ambassador to the Holy See and UAE Grace Relucio-Princesa, Abrahamic Family House-Research and Publication head Dr. William Gueraiche, and founder/Chief Technology officer Akram Assaf gave their observations and insights respectively on 'Filipino Women and Their Historical Significance in the Diaspora,' 'Migration Politics in the UAE-Philippine Corridor,' and 'Labour Market Trends in the Gulf: Implications for Migrant Workers.' Malit comes from a clan of OFWs. So, his intense interest in labour migration. Within 15 years, he had transitioned from a Middle East migration researcher to policy consultant for regional and international bodies such as the Abu Dhabi Dialogue, International Labour Organisation, International Organisation on Migration, and the World Bank. Malit told Gulf Today: 'The Gulf is one of the most exceptional regional hosts for temporary migrants. The migration has increasingly grown over the last two decades. However, there has been less research specifically addressing Philippine migration and diaspora, particularly regarding the evolving challenges faced by second and third generations who have lived and worked in the Gulf and intend to make it their 'second' home in the long term.' At the forum, Ver, the Philippines' top diplomat in Bahrain 10 years back and former DFA-Office of the Middle East and African Affairs Assistant Secretary, narrated how migration and labour strategies and policies shift. He expressed support to the 'compendium on the Filipino narratives in the Gulf' project. Gueraiche, also a University of Wollongong-Dubai associate professor, interested in Geopolitics of Asia and the Middle East, Peace & Conflict Studies, Political History & Colonisation, supported Malit's claim. Gueraiche, grateful to the One Philippines Team invitation, said: 'We need you and the other institutions to go deeper in our research. I study different layers of migration. Filipinos have been elsewhere. The next Philippine leader may come from the UAE. Filipinos have helped shape the history, progress and development of other nations. But, they have been invisible other than in the social media. We must elaborate and work deeper on research.' Malit cited that even as migration policies particularly on the protection and welfare of OFWs worldwide, are agreed upon bilaterally, only 'migrant victimisation narratives' abound. To illustrate, domestic workers, many of whom are at least bachelor degree holders, have helped nations 'achieve gender equality.' Malit referred to what DFA Assistant Secretary Ferrer had pointed out: 'The presence of Filipino migrant labour has demonstrably raised the gross domestic product (GDP) of migrant and labour-receiving countries. For example in Rome, Italy. There, because of Filipino nannies, locals and expatriates are able to secure a full-time paying job of up to 5,000 Euros a month. If they do not have a Filipino nanny, they would remain to be a single-income family. There is a World Bank study that demonstrates that the presence of Filipino workers increases the GDP per capita by a measurable amount.' 'There is a critical need to develop stronger research collaboration between sending and Gulf countries to better understand migration policy issues and best practices that can be practically adopted on the ground,' Malit said, adding that this was recommended in the past with 'few results.'
