The recently passed Capital Market Efficiency Promotion Act (CMEPA) is expected to generate over PHP25 billion in revenue from 2025 to 2030, reinforcing investor confidence and supporting external account stability, according to Finance Secretary Ralph Recto.
The law notably excludes provisions that could discourage participation in key sectors. For instance, the documentary stamp tax (DST) liability on bettors of Philippine Charity Sweepstakes Office (PCSO) games was removed to avoid reducing legal gaming activity, which funds various public welfare programs.
Likewise, tax exemptions for the Philippine Guarantee Corporation were preserved to protect access to affordable housing finance for low-income borrowers and maintain the effectiveness of government support in the housing sector.
Recto emphasized that the revenue from CMEPA will help the government reduce the fiscal deficit to 3.8% of GDP by 2028 and fund essential national priorities.
“This is a major victory for the country, as inclusive access to investment opportunities and a broader, deeper financial system are vital pillars of long-term, inclusive growth. Bukod dito, ang buwis na malilikom ay gagamitin upang pondohan ang ating mga priority projects sa imprastraktura, kalusugan, edukasyon, agrikultura, at iba pang pampublikong serbisyo,” he said.
