A powerful coalition of the Philippines’ leading business and labor groups is urgently calling on the government for immediate relief from the relentless surge in inflation. They argue the current economic pressures are rapidly dismantling the financial stability of both families and businesses across the nation.
The Leaders Forum, representing a broad spectrum of employers, chambers of commerce, and major labor federations, issued a stark warning: the continued taxation of essential goods is simply unsustainable. Everyday Filipinos are witnessing their purchasing power vanish as the prices of food, fuel, and transportation relentlessly climb.
This isn’t just a household crisis; businesses, particularly the backbone of the economy – micro, small, and medium enterprises – are struggling to survive. Rising input costs, coupled with dwindling consumer demand and pervasive uncertainty, threaten their very existence and the jobs they provide.
The core of the problem, the groups assert, lies in the value-added tax levied on necessities. While acknowledging the importance of tax revenue, they emphasize the immediate and devastating impact these taxes have on affordability and economic activity.
Their proposal centers on a targeted review, and potential temporary suspension, of VAT on essential goods. Crucially, they demand rigorous monitoring to guarantee that any tax reductions are directly passed on to consumers in the form of lower prices.
Beyond VAT, the coalition is advocating for an increase in the tax-exempt income ceiling, expanded support for the most vulnerable populations, and carefully timed fiscal interventions for industries facing exceptional challenges. These measures aim to provide a multi-faceted safety net.
The groups are also seeking a stronger voice in the policy-making process, demanding sustained dialogue with the Marcos administration and increased representation on key decision-making bodies. They believe collaborative engagement is vital to address critical concerns surrounding wages, employment, and business viability.
However, President Marcos Jr. has previously expressed reluctance to remove VAT on petroleum products, citing their importance as a revenue stream for vital social programs. He recently opted to suspend excise taxes on liquefied petroleum gas and kerosene following a spike in global oil prices, a move that offered limited relief.
