CEBU, PHILIPPINES — President Ferdinand Marcos Jr. has pushed for tax relief for middle-income earners, lower electricity costs, and stronger anti-corruption measures, while highlighting infrastructure, transport, and disaster resilience projects benefiting Cebu and the Visayas during his penultimate State of the Nation Address on Monday, July 27.
Marcos urged Congress to expand income tax exemptions for workers and provide relief to small businesses.
The President proposed increasing the income tax exemption threshold to P350,000 annually from the current P250,000, while reducing tax rates for those earning above the threshold.
“Hindi natin kalilimutan ang ating mga manggagawang Pilipino lalo na ang mga middle class pati na ang mga maliliit na negosyo,” Marcos said.
He said the middle class and small enterprises continue to bear the impact of recent crises, particularly the surge in prices brought about by the conflict involving Iran, the United States, and Israel.
Marcos said the proposed tax measures would allow workers to keep more of their earnings.
“Kaya bilang natatanging proteksyon sa kanila at para mas mapakinabangan nila ang pinaghirapan nilang kita, nananawagan ako sa Kongreso upang maipasa ang batas na magbibigay ng bahagyang ginhawa para sa ating bayaring buwis,” Marcos said.
He also sought an exemption for small businesses from the minimum corporate income tax and proposed a tax amnesty covering unpaid income tax, estate tax, donor’s tax, and value-added tax.
“Kasama na rin diyan ang mga multa na kaakibat ng mga ito,” he said.
EPIRA AMENDMENTS
The President likewise urged Congress to amend the Electric Power Industry Reform Act (EPIRA) to prohibit the passing on of systems loss charges, including value-added tax, to consumers.
“Hindi naman kasalanan ng consumer na nagkaroon ng systems loss. Kaya hindi naman tama na sila pa ang pagbabayarin dito,” Marcos said.
The proposal drew the loudest applause and a standing ovation from lawmakers during the address.
Cebu projects
Marcos also cited several infrastructure and transport initiatives in Cebu, underscoring the region’s role in the country’s economic growth and climate resilience.
Among them was the Cebu Port Authority’s (CPA) waiver of terminal fees, which he said was intended to lower logistics costs and ease the transport of goods.
“Halimbawa, sa Cebu Port, naging libre ang terminal fee,” the President said.
CPA General Manager Francisco Comendador III said the agency implemented the measure in line with the national government’s efforts to ease the burden of rising costs brought about by the energy crisis.
According to the CPA, waived and adjusted port charges from April 18 to July 10, 2026 reached P52.46 million, including P7.7 million in berthing and anchorage fees, P20.8 million in passenger terminal fees, P5.7 million in wharfage fees, and P18.5 million in cargo handling shares.
The incentives benefited 16,229 vessels, 1,284,626 passengers, and 48,198 vehicles.
Marcos also highlighted the opening of the first phase of the Cebu Bus Rapid Transit (CBRT), describing it as one of the administration’s major transportation milestones.
Speaking before a joint session of Congress, he said the government continues to prioritize investments in mass transportation to provide Filipinos with faster, more efficient, and affordable public transport.
“Sa nasaksihan nating pagtaas ng presyo ng petrolyo, maraming kababayan natin ang umasa sa pampublikong sasakyan. Kaya pinagtutuunang mabuti ng Administrasyon ang ating mga tren, mga busways, transport hubs at integrated terminals, at ang pagpapaganda at pagpapalawak ng mga paliparan at pantalan sa buong bansa,” the President said.
Among the projects he cited was the partial operation of the CBRT.
“Sa kabilang banda, ’yung unang bahagi ng Cebu Bus Rapid Transit ay bukas na,” he said.
Marcos made no announcement regarding the remaining phases of the project but included the CBRT among the administration’s transport modernization initiatives.
The President also cited Oplan Kontra Baha, the government’s nationwide flood mitigation program launched in Cebu in 2025 following severe flooding in Metro Cebu.
The initiative, which runs until August 2026, brings together national agencies and local governments to accelerate the rehabilitation of drainage systems, rivers, waterways, pumping stations, and other flood control infrastructure.
In Metro Cebu, the program covers the cleanup of eight priority waterways spanning 161 kilometers and 212 kilometers of drainage systems.
Marcos said flood control projects would continue to be fast-tracked, while government agencies strengthen disaster preparedness and improve the resilience of infrastructure.
He also acknowledged the earthquakes that struck parts of the Visayas in recent months and assured affected communities of continued government assistance and rehabilitation support.
Anti-corruption drive
The President also renewed his administration’s anti-corruption campaign by announcing developments in the investigation into alleged anomalies in flood control projects.
Marcos said the Office of the Ombudsman is preparing to file multiple cases against his cousin, former House Speaker Martin Romualdez.
He added that contractors, senior Department of Public Works and Highways (DPWH) officials, and lawmakers implicated in the alleged irregularities have already been charged and detained.
“Mayroon nang mga unang nakasuhan at nakulong: mga kontratista; matataas na opisyal ng DPWH; pati na ang mga mambabatas,” the President said.
Marcos said the Ombudsman is now close to filing multiple cases against the former Speaker.
“Dumating na tayo sa puntong ayon sa Ombudsman ay malapit na ang paghahain ng patong-patong na kaso laban sa dating speaker. Masakit sa akin ito pero kailangan natin itong gawin,” he said.
“Hindi ako pangulo ng aking pamilya. Hindi ako pangulo ng aking kaibigan. Ako ay pangulo ng Pilipinas, at ang tungkulin ko ay sa inyo — ang aking mga kapwa Pilipino,” he added.
Marcos also reported that the government has recovered, frozen, and preserved P25 billion worth of assets, which have been returned to the National Treasury.
Written by Mitchelle L. Palaubsanon, Caecent No-ot Magsumbol
