A LAWMAKER is pushing for tax relief measures for micro businesses through the proposed Ginhawa bill amid continued economic uncertainty triggered by tensions in the Middle East and rising oil prices.
Sen. Sherwin Gatchalian, vice chairman of the Senate Committee on Ways and Means, said easing the tax burden on small enterprises would help them sustain operations, expand their livelihoods and protect jobs.
“When we lighten the tax burden of small businesses, they can further grow their livelihood and ensure steady income and employment for their workers,” he said in a statement.
The proposed Ginhawa measure, or the Granting Increase in Take-Home Pay for All Working Filipinos Act, seeks to grant micro-entrepreneurs an additional deductible expense equivalent to 50 percent of their labor costs.
The proposed tax incentive would cover small businesses such as sari-sari stores, carinderias, laundry shops, tailoring services, food stalls and small e-commerce enterprises, among others.
Gatchalian said lower taxes could also encourage informal businesses to formally register, allowing them greater access to bank financing and expansion opportunities that could contribute to economic growth.
Under Republic Act 11976, or the Ease of Paying Taxes Act, micro taxpayers are classified as businesses with annual gross sales of less than P3 million.
Political tensions
Meanwhile, the senator also urged political leaders to exercise restraint and promote responsible public discourse to help restore investor confidence as rising political tensions are beginning to weigh on the Philippine economy.
Gatchalian issued the appeal as the peso weakened further to a record low of P61.721 against the US dollar at Friday’s close, May 15, 2026, amid growing concerns over political uncertainty.
“The cost of all this political chatter is starkly evident in the peso’s performance against the dollar. While external factors are at play, analysts are now citing an ‘uncertainty premium’ attributed to political tensions,” Gatchalian said.
He warned that the current political climate is dampening confidence among both regional and global investors, potentially affecting the country’s macroeconomic stability.
“We cannot allow this to continue. The country’s economic growth and the welfare of our people are at stake,” he added.
Gatchalian said the movement in the financial markets was a clear signal that political leaders must adopt a more constructive and accountable tone in public discussions.
“This is a clear signal coming from our financial markets. It is important for everyone to demonstrate orderly public discourse that is constructive and responsible,” he said.
According to the senator, further depreciation of the peso could worsen inflationary pressures by increasing the cost of imported goods such as fuel and rice, adding to the burden on consumers and businesses already grappling with elevated prices. / KOC