Latest news with #CapitalMarketEfficiencyPromotionAct
AFP
31-07-2025
- Business
- AFP
Posts falsely claim new Philippine law taxes bank savings
"Savings in banks now have a 20 percent tax," reads the overlaid text on an image of Finance Secretary Ralph Recto, shared in a July 16, 2025 post on X with more than 1,400 shares. "This is something else. Isn't this discouraging people from saving up? Let me just take out my 345 pesos (US$6) now before it gets taxed hahaha!" the caption says. Recto is a key figure in President Ferdinand Marcos Jr.'s economic team, whose members were retained despite a cabinet revamp aimed at reviving his administration's popularity after disappointing midterm election results (archived link). Image Screenshot of the false Facebook post captured on July 29, 2025, with a red X added by AFP Similar posts circulated across social media, drawing concerns from users who believed the government had begun taxing all personal savings. "It's already hard to save, and now they're imposing a 20 percent tax?" one user said. Another commented: "Let's just put our money in a piggy bank. Recto is out of his mind." Taxing interest income The posts surfaced nearly two weeks after the Capital Market Efficiency Promotion Act (CMEPA) -- -- took effect in July (archived link). But Carina Laforteza, head tax lawyer at SyCipLaw firm, said the law does not "impose a new tax on savings per se, as only the interest income -- not the principal -- is subject to tax" (archived link). Laforteza explained that a 20 percent final withholding tax on interest income ith some exemptions: foreign currency deposit unit (FCDU) accounts were taxed at 15 percent, while long-term deposits of five years or more were exempt (archived link). "CMEPA removed these exceptions," she said. The Department of Finance (DOF) also rebuffed the false posts in a July 17 statement, clarifying it does not impose a new levy on money saved but standardises the tax rate on interest income to correct an "unfair system that favoured the wealthy" (archived link). It noted that the law is not retroactive, so time deposits made before July 1 will continue to enjoy the preferential tax rates until maturity. Mon Abrea, the chief tax advisor of Asian Consulting Group, said the removal of the tax exemption "brings both gains and drawbacks" (archived link). "While it boosts government revenue, it also increases the tax burden on depositors, especially conservative, middle-income savers who relied on long-term deposits as a safe, tax-free option," he told AFP on July 29. "With the exemption gone, these products lose their financial appeal." Terence Conrad Bello, a lawyer with the taxation and commercial law firm Baniqued & Bello, said the repeal "will obviously create a disincentive for long-term savings" and will "likely dampen the market" (archived link). Laforteza noted that while some may continue with long-term deposits despite the removal of tax exemptions, others might turn to alternatives with higher returns or lower taxes. "If a person is a 'saver', the removal of the tax incentive should not affect [their] decision to save, but it may affect where the savings are made," she added. AFP has previously debunked claims about Philippine economic policies here and here.
Nikkei Asia
11-07-2025
- Business
- Nikkei Asia
Philippine tax cuts spur hope for more IPOs in sluggish market
Traders work on the floor of the Philippine Stock Exchange in Metro Manila: People in the finance industry hope cuts in transaction taxes will breath life into the country's sleepy equity market. © Reuters KATRINA BIANCA CUARESMA MANILA -- On Tuesday morning last week, Philippine President Ferdinand Marcos Jr. rang the opening bell at the Philippine Stock Exchange (PSE) -- not for a new listing but to mark the first day of a law aimed at jump-starting the country's sluggish capital markets. The Capital Market Efficiency Promotion Act (CMEPA), a long-awaited reform designed to slash trading taxes and modernize market rules, took effect on July 1. By lowering transaction costs and bringing the Philippines in line with its ASEAN peers, the law is viewed as a foundational step toward revitalizing a market that has long lagged behind its regional counterparts in liquidity and investor participation.
Yahoo
26-06-2025
- Automotive
- Yahoo
ASEAN 2025 vehicle market forecast to be flat
ASEAN Light Vehicle (LV) sales increased by 6% YoY in April, with growth seen across the region except for in the Philippines. As such, ASEAN volumes improved from a 2% YoY expansion in Q1 2025 to 3% YoY in January-April. LV sales in the Philippines fell by 7% YoY in April, despite the Manila International Auto Show (MIAS) taking place during the month which reportedly recorded the highest number of attendees and companies launching models at the event. The country's weaker performance was likely due to a) the upcoming school year enrolment leading consumers to delay new vehicle purchases; and b) certain new models and/or booking orders from the event being delivered later. However, in terms of YTD sales, the growth rate remained positive at 6% YoY. Although the April result was weaker than expected, the 2025 outlook for the Philippines remains unchanged at 492k units, since orders and deliveries during the MIAS event could be delayed for a month. A further key development in this report is that the government is set to cancel the tax exemption on Pickups in order to increase government revenue under the proposed Capital Market Efficiency Promotion Act (CMEPA). The tax rate on Pickups will be between 4-50% depending on the price—therefore, we anticipate that consumers will rush to make Pickup purchases before the policy is implemented. It is important to note that Pickups have been exempt from taxes since 2018 under former President Duterte's Tax Reform for Acceleration and Inclusion (TRAIN) law. Vietnam's LV demand has continued to rise and increased by 35% YoY in April, which contributed to a YTD expansion of 48% YoY. This strong demand was bolstered by economic growth—GDP remained robust in Q1 2025 and rose by 6.9% YoY, while investments also grew by 7.2% YoY. Additionally, the government has extended the exemption of the registration fee for Battery Electric Vehicles (BEVs) until February 2027, having initially set the expiration date for February 2025. Since April volumes aligned with our expectations, the sales projection for Vietnam remains unchanged at 521k units in 2025. Thailand's LV sales returned to positive territory, albeit with a modest growth rate of 0.6% in April. This increase was primarily fueled by demand in the Passenger Vehicle (PV) segment, particularly for BEVs and Plug-in Hybrid Electric Vehicles (PHEVs). However, the Light Commercial Vehicle (LCV) segment experienced a significant decline, dropping by 19% YoY due to a sluggish Pickup Truck market. Recent forecasts from Oxford Economics (OE) have further downgraded Thailand's GDP growth projection for 2025 to 1.9%, down from 2.3% just a month ago and 2.5% prior to the recent geopolitical developments surrounding US President Trump's liberation day. Despite these challenges, we maintain the country's 2025 LV sales outlook at 556k units, reflecting a 2% decline YoY. However, the projection appears increasingly precarious due to ongoing political tensions and recent conflicts along the Thai-Cambodia border. Malaysia's April sales rose by 4% YoY, largely driven by national brand, Proton, and new Chinese entrant, Jaecoo. Based on recent information, volumes in the country were estimated to have marginally fallen by 0.4% YoY to 70k units in May, although this marked a surge of 14% MoM, and was the second highest monthly total of the year so far. The impressive rebound was mainly attributed to accelerations of Perodua and Honda. As such, May's performance was stronger than expected, and we have subsequently increased the 2025 outlook to 790k units, from 772k units previously. However, this still represents a 3% YoY drop from the 817k units recorded in 2024. Indonesia's LV sales increased by 8% YoY in April, predominantly due to new Chinese players including BYD, Chery, Denza, Geely and Aion. As these brands—except for Chery— only offer BEV models, it implies that the stronger performance came courtesy of early BEV adopters. However, the recent GAIKINDO report indicated that the LV market plunged by 14% YoY in May, owing to softer consumer purchasing power and cloudy economic conditions. As such, we have lowered Indonesia's sales outlook through the long term, due to a) May sales being weaker than expected due to declining commodity prices and increasing global tension; and b) the local media reporting that vehicle prices rose by an average of 7.5% per year while the income of the middle class grew by only 3-3.5% per year, hindering the demographic's ability to afford a new vehicle. As a result, Indonesia's LV sales are now projected at 748k units in 2025 and will not return to the 1.0 million unit level until 2029. Combining these developments, the overall ASEAN sales outlook remains unchanged at 3.11 million units in 2025, which is a slight drop from 3.12 million units in 2024. However, downside risks remain, and there is the potential for the market to drop below 3.0 million units due to global trade uncertainty and conflict in the Middle East. This article was first published on GlobalData's dedicated research platform, the . "ASEAN 2025 vehicle market forecast to be flat – GlobalData" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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