Marcos Jr. has proposed two tax relief measures that would extend benefits to at least 3.13 million workers and 78,000 small businesses, according to the Department of Finance (DoF).
The package is projected to cost the government approximately P66 billion in foregone revenues, creating a significant fiscal gap that officials are seeking to offset through alternative revenue streams.
The DoF indicated that the administration is considering increases in taxes on unhealthy products to help finance the relief package.
Finance Secretary Carlos Dominguez III emphasized that addressing the revenue shortfall is a high priority, with the goal of presenting a comprehensive plan within the current year.
The proposed offsets aim to balance the social benefits of the tax cuts with the need to maintain fiscal discipline.
The relief measures target broad segments of the workforce and the small business sector, which have faced persistent cost pressures.