Philippine business groups expressed support for the Bureau of Internal Revenue’s (BIR) plan to expand its one-time tax abatement program to cover small taxpayers.

“By scaling up this program to include small taxpayers, the BIR is offering a crucial lifeline to larger segments of the business community that are still navigating post-pandemic recovery and global market fluctuations,” the Philippine Exporters Confederation, Inc. (Philexport) said in a statement on Wednesday.

Revenue Regulations No. 4-2026, issued in June, introduced the one-time tax abatement program for micro taxpayers — those with annual gross sales below P3 million. Abatement relieves qualified taxpayers of covered tax liabilities and the penalties attached to them, giving businesses a route to close outstanding cases without drawn-out litigation. In four months, the program has granted P266.79 million in tax and penalty relief to micro taxpayers.

The BIR is now studying an expansion of the program to small taxpayers, which the government classifies as businesses with annual gross sales of at least P3 million and less than P20 million. If adopted, the move would give enterprises above the micro threshold access to the same one-time settlement route for long-running tax cases.

“This expanded relief will allow small businesses to resolve long-standing open cases and redirect their financial resources away from litigation or steep penalties and toward productivity, technological upgrading, and job creation,” Philexport said. The group added that the proposal would also improve the ease of doing business and ensure a more responsive tax administration.

“Extending the program to businesses with annual gross sales of P3 million to below P20 million will allow more enterprises to resolve outstanding tax cases and ease a burden that may have remained on their books for years,” the Philippine Chamber of Commerce and Industry (PCCI) said in a separate statement.

Micro, small and medium enterprises (MSMEs) account for about 99% of businesses in the Philippines and roughly 40% of the economy, yet they continue to face tax and regulatory pressures on their operations. At that scale, the sales bands used to set eligibility determine how much of the country’s business base a relief program can reach.

“The abatement program allows qualified taxpayers to settle covered obligations and put these cases behind them,” the PCCI said, adding that MSMEs also need sustained access to clear guidance, taxpayer education, and responsive assistance from the BIR.

Philexport encouraged qualified micro-entrepreneurs to take advantage of the current program ahead of the Dec. 31 deadline. The proposed expansion, meanwhile, remains under BIR review, and any change to eligibility would require a new issuance from the bureau. — Beatriz Marie D. Cruz