The Department of Finance (DOF) has officially withdrawn its proposed measure to increase taxes on capital gains, donor’s, and estate transfers from 6% to 10%.
According to Albay 2nd District Representative and House Ways and Means chairman Joey Sarte Salceda, the DOF pulled out the Government Revenues Optimization through the Wealth Tax Harmonization (GROWTH) Bill following a reassessment of the country’s fiscal situation. Finance Secretary Ralph Recto confirmed that the government’s current strong fiscal performance made additional revenue measures unnecessary at this time.
The DOF cited stronger-than-expected revenue collections, a double-digit growth rate in tax collections, and steady progress toward fiscal consolidation goals. In the first quarter of 2025 alone, total tax collections grew by 13.55% to ₱931.5 billion. The Bureau of Internal Revenue (BIR) collected ₱690.4 billion (up 16.67%), while the Bureau of Customs collected ₱231.4 billion (up 5.72%).
What’s Next for Fiscal Policy?
Finance Secretary Recto emphasized that the government remains committed to supporting economic growth without imposing new tax burdens. Instead, the DOF will focus on successfully implementing key reforms, including:
- The CREATE MORE Act
- The Ease of Paying Taxes (EOPT) Act
- Amendments to the Foreign Investment Act, Retail Trade Liberalization Act, and Public Service Act
- The Public-Private Partnership (PPP) Code
The DOF also plans to strengthen non-tax revenue sources and ensure fiscal sustainability under the Medium-Term Fiscal Framework (MTFF).
Key Takeaways
✅ The GROWTH Bill proposing higher taxes on capital gains, donor’s, and estate taxes has been withdrawn.
✅ Stronger revenue collections led to the decision to halt new tax measures.
✅ Total tax collections rose 13.55% in Q1 2025.
✅ Fiscal policies will focus on reforms that encourage investment and sustainable growth.
✅ No new tax burdens will be imposed for now amid a strong fiscal position.
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Source: GMA Integrated News
