The Department of Finance (DOF) has scrapped the proposed GROWTH Bill, which aimed to raise capital gains, donor’s, and estate taxes from 6% to 10%, saying there’s currently no need for such a measure due to the government’s solid fiscal standing.
Albay Representative Joey Salceda, who chairs the House Ways and Means Committee, said the withdrawal followed a DOF assessment highlighting robust revenue growth and steady progress in fiscal consolidation. The bill was originally a refined version of the Duterte-era PIFITA, part of the broader tax reform program.
Finance Secretary Ralph Recto affirmed that current tax revenues — which rose over 13% in the first quarter of 2025 — are more than sufficient to cover spending needs. The Bureau of Internal Revenue collected P690.4 billion, while the Bureau of Customs added P231.4 billion.
Recto emphasized that new taxes aren’t necessary at this point, with the government able to fund essential services and economic programs without additional burdens on the public. He pointed to other ongoing reforms like the CREATE MORE Act and the Ease of Paying Taxes (EOPT) Act, which aim to improve revenue generation and investment climate without increasing taxes.
Salceda echoed support for the DOF’s cautious and strategic fiscal management, saying that taxes should only be raised “at the right time, for the right reason.”