President Ferdinand Marcos Jr. urged Congress to raise the annual tax-exempt income threshold to P350,000 and remove system loss charges and the 12 percent VAT from monthly electricity bills.
Addressing corruption, the government filed legal cases against contractors, lawmakers, and DPWH officials over anomalous flood control projects, resulting in nearly P25 billion in assets being recovered, frozen, or preserved.
To shield the nation from Middle East conflict disruptions, the government declared a State of National Energy Emergency, securing a two-month foreign oil supply and suspending LPG and kerosene excise taxes.
PRESIDENT Ferdinand Marcos Jr. delivered a one-hour-and-30-minute State of the Nation Address (Sona) focused on easing everyday burdens for poor and middle-class Filipinos. His speech centered on fighting government corruption, managing the economic impact of Middle East conflict and strengthening national security across key sectors. Speaking to a joint session of Congress, the President outlined concrete steps to bring direct relief to workers, families and local industries.
Tax relief and lower electricity bills
To help lower daily living costs, President Marcos asked Congress to amend Republic Act 9136, also known as the Electric Power Industry Reform Act of 2001. His proposal seeks to remove system loss charges and the 12 percent value-added tax (VAT) from monthly electricity bills.
He also urged lawmakers to raise the annual tax-exempt income threshold from P250,000 to P350,000. This adjustment will allow millions of Filipino workers to keep more of their hard-earned money, while proposed income tax cuts for other wage earners aim to encourage economic growth and make the tax system fairer.
Crackdown on government corruption
Addressing governance, Marcos announced that the National Government filed legal cases against contractors, Department of Public Works and Highways (DPWH) officials and lawmakers linked to allegedly anomalous flood control projects.
Efforts have resulted in nearly P25 billion in assets being recovered, frozen, or preserved, with over P800 million returned directly to the National Treasury. The government has also introduced reforms in DPWH project monitoring, procurement and transparency.
Emphasizing his commitment to accountability, Marcos stated: “Masakit man sa akin ito ngunit kailangan gawin ang tama. Hindi ako Pangulo ng aking pamliya,. Hindi ako Pangulo ng aking kaibigan. Ako ay Pangulo ng Pilipinas at ang tungkulin ko ay sa inyo, mga kapwa ko Pilipino,” (It pains me, but doing what is right is necessary. I am not the President of my family. I am not the President of my friends. I am the President of the Philippines, and my duty is to you, my fellow Filipinos.)
Energy emergency and economic protections
To shield the nation from rising fuel prices and supply disruptions caused by Middle East conflict, the government declared a State of National Energy Emergency strictly for the energy sector.
The government secured a two-month oil supply from foreign partners, worked with oil companies to stabilize prices, enacted fuel price rollbacks and suspended excise taxes on LPG and kerosene for three months. Electric utilities were directed to refund overcharges, offer installment plans and temporarily stop power disconnections.
Financial assistance and subsidies were expanded for farmers, fisherfolk and transport workers. To promote clean energy, Marcos championed the proposed Sariling Kuryente Act to help households adopt solar power systems.
Agriculture, infrastructure and disaster response
On food security, the Benteng Bigas Meron Na program currently benefits about 12 million Filipinos, while Kadiwa centers connect farmers directly to consumers. The President announced a goal to plant 100 million coconut trees by the end of his term — with 18 million already planted — alongside distributing over 400,000 land titles and expanding crop and life insurance.
Infrastructure development continues with progress on the North-South Commuter Railway, 12 MRT-7 stations opening next year and the first phase of the Cebu Bus Rapid Transit. EV tariffs will remain suspended until 2028 to support the goal of making electric vehicles half of all road traffic by 2040.
Disaster preparedness was upgraded through 919 last-mile facilities capable of delivering relief within 24 hours. Marcos also announced plans to build a space exploration gateway in Cagayan, featuring a sounding rocket launch test set for next year with South Korea.
Social services, education and healthcare
More than 12,000 overseas Filipino workers (OFWs) were repatriated from Middle East conflict zones, with over 140,000 receiving food, medical, financial and shelter assistance alongside job reintegration programs.
Under social housing, over 500,000 units were built or funded through the 4PH Program, while the Pag-IBIG loan ceiling was raised to P10 million. Higher wages for OFW domestic workers were announced, along with increased pensions and allowances for SSS members and uniformed personnel.
Education updates include technical-vocational training in Senior High School, artificial intelligence (AI) training for 1.8 million students, parents and teachers and deploying 10,000 school counselor associates. Healthcare reforms feature the Yakap and Gamot programs, Philhealth expansion, VAT exemptions on over 2,000 medicines and digital medical aid via the eGovPH app.
Foreign trade and maritime rights
In foreign relations, the Philippines holds 23 active or negotiated free trade agreements, including a new pact with the United Arab Emirates and the US-backed Pax Silica Industrial Hub for AI and manufacturing.
Marcos reaffirmed that the country will continue asserting its maritime rights in the West Philippine Sea through peaceful and legal means.
President Marcos concluded his address by pledging to complete his administration's reforms during its remaining two years in office. By urging all Filipinos to work together, he emphasized that these actions in tax relief, anti-corruption and infrastructure build the foundation for a more prosperous, resilient and secure nation. (MVG)