Marcos to SEC: Remove bureaucratic bottlenecks in capital markets promotion law

President Ferdinand “Bongbong” Marcos Jr. on Tuesday tasked the Securities and Exchange Commission to streamline the process of implementing the Capital Markets Efficiency Promotion Act or CMEPA, which redefines how Filipinos make investments. 

In his speech at the Philippine Stock Exchange during the special bell-ringing to mark the effectivity of Republic Act (R.A.) No. 12214 or the CMEPA, Marcos said that before the law was enacted, investing in stocks meant paying a tax of 0.6%, which was six times higher than Singapore and Malaysia, and certainly the highest in the ASEAN region. 

Under CMEPA, that rate has been reduced to 0.1%, according to the President. 

“To ensure the successful implementation of this reform, I direct the Securities and Exchange Commission to streamline its procedures, remove bureaucratic bottlenecks, [and] reduce transaction costs within its control. Undertake the necessary changes to fulfill your responsibilities in these changing times,” Marcos said. 

According to Marcos, the law enhances the Philippines’ competitiveness in the ASEAN region as it also strengthens the foundations of the capital market. 

He also emphasized that market integrity is a shared responsibility, calling on all market participants and stakeholders to uphold transparency, fairness, and good governance.

Marcos said CMEPA has removed certain exemptions to enhance fairness in the country’s tax system. 

He noted that government-owned or controlled corporations are now subjected to the same passive income taxes as other institutions. 

Marcos also said that the new law is projected to generate over P25 billion in net revenue until 2030, which is a substantial amount that is seen to help fund the building of roads, bridges, hospitals, schools, and other social safety net programs. 

He said the new law would not just benefit the well-off, stock traders, and the professionals.

“It is for every Filipino who dreams of better financial security. It empowers the small business owner, the young professional, and the overseas Filipino worker to start investing their hard-earned money to build a better future,” Marcos said. —KG, GMA Integrated News