(July 22, 2024) — Pres. Ferdinand Marcos, Jr. concluded his second State of the Nation Address (SONA) with an appeal to Congress to pass 16 priority measures: “Makikipagtulungan tayo nang mabuti sa Kongreso para sa mga mahahalagang batas na kinakailangan para sa ating tuloy-tuloy na pag-ahon.”

Almost a year hence, five were enacted, and seven were made priority bills by the Legislative Executive Development Advisory Council (LEDAC), set to be enacted as the 19th Congress adjourns in June 2025.

Before hearing new legislative requests during President Marcos’ third SONA this afternoon, News5 Digital reviewed the objectives and latest developments of these bills.

Five specific measures were under the administration’s medium-term fiscal framework covering the years 2025 to 2028:

1. The Department of Finance (DOF) is pushing for the legislation of an excise tax on single-use plastics, which may generate more than P31.52 billion in estimated revenue from 2025 to 2028 while also addressing climate change. This includes non-recyclable plastics such as “labo,” “sando,” and “ice.” In the latest LEDAC meeting, this was set as a top priority bill, approved for passage before the end of the 19th Congress.”
2. A concerning matter for netizens and subscribers, the proposed value-added tax (VAT) on digital services is just a bicameral reconciliation away from President Marcos, Jr.’s signature as of May 21. It was also designated as a priority bill by the LEDAC. House Bill (HB) No. 4122 and Senate Bill (SB) No. 2528 aim to amend Section 105 of the “National Internal Revenue Code (NIRC) of 1997” by adding the term “including digital services,” subjecting it to a 12% VAT. Seeking to level the playing field between local and foreign digital service providers, the proposed reform may bring a total of P83.8 billion in revenues from 2024 to 2028, according to Finance Sec. Ralph Recto. This proposed measure was first mentioned by President Marcos, Jr. in his first SONA, stating that the tax system will be adjusted to catch up with the developments of the digital economy.
3. The proposed rationalization of the mining fiscal regime was also included in the top priority list of the LEDAC “to enable the nation to reap the benefits of the Philippines’ rich mineral resources by introducing a straightforward and streamlined fiscal policy” on mining. HB No. 8937 was approved on third and final reading on September 25, 2023. The proposed measure lowers the royalty rate for mining operations within mining reservations from 5% to 4% and imposes a profit-based royalty for mining operations outside mining reservations, among other provisions. The Senate Committee on Ways and Means tackled the bill on March 21.
4. Before going to the Christmas break on December 12, 2023, the House passed on third and final reading HB No. 9647, amending Republic Acts (RA) Nos. 8794 and 11239. This new motor vehicle user’s charge/road user’s tax bill seeks to finance the government’s public utility vehicle (PUV) modernization program. Still pending in the Senate committees on ways and means and public services, Sen. Raffy Tulfo filed SB No. 2375 on August 1, 2023, but it only focused on the exemption of motorcycles from the coverage of the said tax under the existing law.
5. The military and uniformed personnel pension is now a second priority bill set by the LEDAC for passage before the end of the 19th Congress. The House passed HB No. 8969 on third and final reading on September 25, 2023. SB No. 2501, substituting four Senate bills and taking into consideration its House counterpart, was then put on the plenary, and its latest interpellation was held on May 15, pending its second reading approval.
6. A focused group discussion organized by the Presidential Legislative Liaison Office was held on Jan. 26 regarding the proposed amendment to the Philippine Fisheries Code. The discussion was attended by representatives of various concerned national agencies and technical staff from the Senate and House of Representatives.
7. The proposed amendment of the Anti-Agricultural Smuggling Act defines crimes of agricultural economic sabotage, provides stiffer penalties, creates a council, and repeals the eight-year-old RA No. 10845. Both chambers of Congress passed the bill on May 22 after a bicameral conference on the provisions of HB Nos. 3917 and 9284 and SB No. 2432.
8. On December 12, 2023, the Lower House passed on third and final reading HB No. 9673, consolidating all proposed measures on the “Revised Cooperative Code of the Philippines.” A joint Senate panel public hearing was also held on May 15 to further discuss the proposed law, with the transmitted House bill and three Senate bills under consideration. The proposed amendments to the 16-year-old RA No. 9520 aim to sustain and ensure the growth of 18,848 operating cooperatives (data as of 2020 from the Cooperative Development Authority).
9. Just two days before his third SONA, President Marcos, Jr. signed the New Government Procurement Law (RA No. 12009), amending the “Government Procurement Reform Act” (RA No. 9184). The new law standardizes procurement forms and institutionalizes electronic procurement, also shortening the process from three months to only 60 days. It also promotes transparency, competitiveness, efficiency, professionalism, accountability, and sustainability in the government’s procurement process.
10. Another LEDAC priority bill, the proposed New Government Auditing Code, is in its advanced stage as the House passed HB No. 9674 on third and final reading on December 12, 2023. The bill seeks to update the 45-year-old Presidential Decree No. 1445, or the ‘Government Auditing Code of the Philippines,’ considering changing times, emerging technologies, and digitization. The bill also reorganizes the Commission on Audit, clearly defining the powers and functions of its officials and auditing teams.
11. Along with RA No. 12009, the “Anti-Financial Accounts Scamming Act” (RA No. 12010) was signed by the President on July 20 to address the rising tide on online scams. The law gives the Bangko Sentral ng Pilipinas (BSP) the power to inquire into cases of financial accounts that may be fictitious. The BSP may also apply for cybercrime warrants for money muling activities and economic sabotage.
12. Under the Philippine Development Plan 2023-2028, President Marcos, Jr. signed the “Tatak Pinoy” Law (RA No. 11981) on February 26. In a July 15 forum, Trade Sec. Fred Pascual said the law’s objective is to ensure that Filipino-made brands stand as “symbols of quality, innovation, and sustainability.” As the implementing agency, the Department of Trade and Industry designed ‘ANGAT Negosyo,’ a comprehensive industrial strategy that fosters a vibrant start-up ecosystem, empowers established businesses to enhance their competitiveness, and strategically targets key sectors for growth.
13. A second priority LEDAC bill aimed to be signed into law by June 2025, the proposed Blue Economy Law, was passed on third and final reading in the House (HB No. 9662) on December 12, 2023, and is pending second reading in the Senate (SB No. 2450) with its last floor activity on May 6, during an interpellation by Sen. Koko Pimentel. The measure promotes stewardship and sustainable development of marine wealth within the maritime domains of the Philippines. It will also institutionalize the crafting of a comprehensive framework for the sustainable development of marine and coastal resources and strengthen inter-agency, cross-cultural, and multi-stakeholder coordination.
14. President Marcos welcomed the year 2024 with the signing of RA No. 11976, or the “Ease of Paying Taxes Act,” amending the NIRC. The Palace expressed optimism that tax collection will increase through the efficiency and effectiveness of tax administration using digitalization. The BIR will also hold more roadshows to boost its taxpayer education drive, Commissioner Romeo Lumagui, Jr. said.
15. To provide a more responsive approach to the promotion of local autonomy and to enable local government units (LGUs) to realize their full economic potential, President Marcos, Jr. signed the “Automatic Income Classification of Local Government Units Act” on October 26, 2023. The law classifies municipalities, cities, and provinces into classes according to their income ranges and based on the average annual regular income. The Secretary of Finance is designated to undertake regular income classification once every three years to ensure that LGU income reclassification conforms with prevailing economic conditions.
16. The “Philippine Immigration Act” is currently a second priority LEDAC bill, with its enactment is targeted for June 2025. The proposed measure seeks to update the more than 80-year-old “Philippine Immigration Act of 1940,” aggressively pursuing the modernization of the Bureau of Immigration. The House passed HB No. 8203 on third and final reading on May 29, 2023.

The SONA is not only the president’s annual report to the nation but also the chief executive’s platform to communicate his legislative agenda with members of Congress as they open a new session and get back to work.

While the public can take note of and cross-check the current state of the nation through the President’s annual report, Filipinos can also observe the legislative priorities and directions of the administration as it enters its midterm.

(JREC)

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