THE Philippines’ Department of Finance (DoF) is pressing Congress to swiftly approve the Promoting Growth, Revenue, and Equity towards Socio-economic Sustainability (ProGRESS) tax reform package, which the agency hopes will be enacted by Congress next year.

“We are working closely with Congress for its immediate passage as this is very important because we need to increase the disposable income of our working class given the current situation that we are in,” Finance Undersecretary Karlo Fermin S. Adriano told reporters late on Wednesday, pointing to elevated inflation. “We want it as soon as possible because there’s a real need for it to be passed.”

Inflation accelerated to 7.2% in September from 6.1% in August and just 1.7% a year earlier, bringing the nine-month average to 5.4%. Mr. Adriano noted that rising prices are leaving households with less money after paying for basic needs.

“Even without the crisis, our marginal propensity to consume is around 70% more or less. That means that for every one peso in salary, on average, 70 (centavos) are being spent, and this is without any shocks,” he said.

The ProGRESS tax reform bill, filed by Albay Rep. Adrian E. Salceda, remains pending at the House Ways and Means Committee.

“We’re closely coordinating with the chair of the Ways and Means (Committee). And last communication with us is by the end of the year, the bill will be passed by the Lower House,” Mr. Adriano said, referring to House Ways and Means Committee Chairman and Marikina Rep. Romero “Miro” S. Quimbo.

Under the package, the DoF has proposed a set of tax relief measures, including raising the personal income tax exemption threshold to P350,000 and removing the minimum corporate income tax for micro and small enterprises. The measure also seeks to hike excise taxes on sweetened beverages, tobacco, alcohol, automobiles, and nonessential goods, as well as impose a new excise tax on plastics.

Once enacted, the tax reform package is expected to generate around P47 billion in additional net revenue annually, according to DoF estimates.

Mr. Adriano said separate bills covering portions of ProGRESS have already been approved at the committee level, including measures raising the personal income tax exemption threshold and providing relief from the minimum corporate income tax. The department, however, opposes passing these measures individually, saying they should be enacted as a package.

“We have communicated this with the Ways and Means chair that this is a package and currently, his commitment is that he will consolidate it to become a package,” he said.

Fiscal Program

Meanwhile, Mr. Adriano said the Development Budget Coordination Committee may have to revisit its revenue targets as the ProGRESS package advances through Congress.

“In the revenue program, we will only include a specific tax bill in the revenues, if it’s in the very advanced stages, and we’re pretty sure that it will be legislated,” he said. “In the case of ProGRESS, we’re kind of far from that process, hence it’s not yet part of the revenue program,” he added, referring to the fiscal program under the 2027 Budget of Expenditures and Sources of Financing (BESF).

Under the 2027 BESF, the government projects tax revenues to increase by 9.2% to P4.85 trillion in 2027 from a projected P4.44 trillion this year. Tax revenues are expected to jump by another 8.5% to P5.26 trillion in 2028.

“If we see the light, yes, we will include it (ProGRESS) for 2028 BESF,” Mr. Adriano said.

Consultations and Anti-Corruption Efforts

Mr. Adriano said the department will continue its stakeholder consultations until next year, including one in Davao City in January.

Corruption was among the concerns raised in previous consultations. To address this, the department has been pushing for the modernization of the Bureau of Internal Revenue and the Bureau of Customs.

“Ultimately, if you lessen human intervention, you will ultimately lessen corruption. So, we’re doing it on the DoF side, particularly with our revenue authorities,” he said.

The Philippines was embroiled last year in a corruption scandal involving nonexistent and substandard flood control projects linked to government officials, lawmakers, and contractors. The flood control mess has slowed government spending, weighed on investor and consumer confidence, and dampened economic activity.

The report was originally published by BusinessWorld on October 29, 2026, under the byline Justine Irish D. Tabile: DoF presses Congress to approve ProGRESS bill.