President Ferdinand R. Marcos Jr. led the ceremonial bell-ringing at the Philippine Stock Exchange on Tuesday to mark the start of implementing a landmark reform that benefits not only the wealthy and professionals but also Filipinos who aspire to better financial security.
During the event at the PSE Tower in BGC, Taguig City, President Marcos said the Capital Markets Efficiency Promotion Act (CMEPA) aims to democratize investment access and enhance the country’s financial competitiveness.
“Today, we usher in a new phase of economic opportunity for every Filipino. So, let me be clear: The reform is not just for the well-off and for the professionals, for the stock traders. It is for every Filipino who dreams of better financial security.
. It is for every Filipino who dreams of better financial security,” President Marcos said.
“Let every ring—from this morning and every trading day thereafter—echo our strength, our optimism, [and] our shared hope for a more prosperous future for all Filipinos, the President said.
Signed into law in May 2025 as Republic Act No. 12214, CMEPA slashes the stock transaction tax from 0.6 to 0.1 percent—aligning the Philippines with regional peers and encouraging broader participation in the capital market.
For a first-time investor buying PhP10,000 worth of stock, this means paying PhP10 in tax instead of PhP60, President Marcos said. “This will encourage more Filipinos to invest in our capital market.”
The President said the law also eliminates the documentary stamp tax on mutual funds and unit investment trust funds (UITFs), commonly used by young professionals and middle-class savers.
“The adjustment on rates lowers barriers and opens the market to more investors,” the President stressed.
The new law introduced a uniform 20 percent final tax on interest income, simplifying compliance, removing confusion, and leveling the playing field, the President added.
In promoting retirement security, President Marcos noted that CMEPA offers a 50 percent additional tax deduction to employers who match or exceed employee contributions to the Personal Equity and Retirement Account (PERA).
The tax incentive will encourage employers to help their workers build long-term financial stability, the President said.
On the government side, President Marcos said the law removes certain exemptions for government-owned or controlled corporations (GOCCs), leveling the playing field.
President Marcos lastly directed the Securities and Exchange Commission (SEC) to streamline its procedures, eliminate bureaucratic bottlenecks, and reduce transaction costs to accelerate the impact of the reform.
“I urge all market participants and stakeholders to uphold transparency, fairness, and good governance,” the President said. | PND
