WHEN the 20th Congress opened, leaders promised a new chapter-one that would not only churn out routine legislation but also push through long-delayed reforms to make the Philippine economy more competitive.
From tight foreign ownership restrictions to steep consumer taxes, strict bank secrecy rules, and sky-high electricity rates-these outdated policies, lawmakers argue, are holding back growth and keeping the country less competitive than its ASEAN peers.
Now, with a ticking clock before the Marcos administration ends in 2028, House leaders are framing economic reforms as the chamber’s potential legacy. The goal: a more competitive, resilient, and investor-friendly economy.
Opening the economy
At the heart of the reform agenda is Resolution of Both Houses No. 1 (RBH 1), which seeks to relax the 1987 Constitution’s foreign ownership restrictions.
Former House Committee on Constitutional Amendments chairperson Alfredo Garbin Jr. of Ako Bicol calls it a ‘constitutional refinement, not a rewrite,’ meant to give Congress flexibility to adjust equity limits without reopening the charter each time.
The resolution introduces the phrase ‘Unless Otherwise Provided by Law’ into several sections, allowing Congress to adjust foreign equity limits in natural resources, land, utilities, education, and even media and advertising.
For Garbin, the amendments would give the Philippines the flexibility that many ASEAN economies already enjoy. ‘We need reforms that work within the system, not around it,’ he stressed.
Still, doubts persist. Civil society groups fear that economic amendments may lead to political changes later on. Past ‘Cha-cha’ attempts collapsed amid public suspicion that lawmakers sought to extend their terms, not just open markets.
Transparency in finance
DECADES-OLD Philippine banking secrecy laws, among the strictest in the world, have become a shield for corruption. House Bill 7 would give the Bangko Sentral ng Pilipinas (BSP) access to deposits under probable cause, aligned with global anti-money laundering standards.
‘This bill seeks to allow greater transparency and accountability in the banking and financial sectors,’ said Leyte Rep. Ferdinand Martin Romualdez.
‘It promotes openness and strengthens anti-corruption mechanisms, ensuring that banks are not misused to hide public money or the proceeds of crime,’ he said.
Reforming the law, he added, would also bring the Philippines closer to international standards-making the financial system safer and more attractive for both investors and citizens.
The bill empowers the Bangko Sentral to access deposits upon probable cause, sharing data only with agencies such as the Anti-Money Laundering Council, with penalties for unauthorized disclosures. As of October 2025, HB 7 is listed among the priority bills under the Legislative-Executive Development Advisory Council (LEDAC).
By dismantling secrecy barriers, the bill could recover billions from cases like the pork barrel scam and flood control fund anomalies, boosting revenues and aligning with Thailand’s open financial systems that draw $15 billion FDI yearly versus the Philippines’ $9 billion. Enhanced market integrity could add 0.5 percent to GDP, though robust safeguards are critical to protect privacy.
But privacy advocates warn that without clear safeguards, depositor confidence may erode. For a reform pending for decades, the balance between transparency and rights will be critical to its acceptance.
Protecting farmers, stabilizing rice prices
The Rice Tariffication Law (RA 11203), passed in 2019, was meant to liberalize rice trade and lower prices. Instead, farmers have complained of low farm-gate prices, even as retail prices remain high.
Reforms to the Rice Tariffication Law through House Bill 48 were filed in the House to restore a calibrated stabilization role for the National Food Authority and ring-fence tariff revenues for direct farmer support. Economic managers and agriculture champions in the chamber have debated modalities-ranging from strategic buffer stocking to tighter import timing rules-to address the farm-gate versus retail price disconnect highlighted by lawmakers.
For Albay Rep. Adrian Salceda, fixing the Rice Tariffication Law is urgent. What was supposed to liberalize the rice trade has instead left farmers struggling, he said.
‘Palay prices have collapsed, yet retail rice prices remain controlled by cartels,’ Salceda warned. His proposed amendments would restore powers to the National Food Authority (NFA), enabling it to use tariff revenues for direct farmer support and market stabilization.
Without these corrections, he argues, the Philippines risks weakening its own agriculture sector and deepening dependence on imports.
The bill could stabilize prices at P20-25 per kilo, benefiting 4 million farmers and reducing imports by 20 percent. Consumers could see lower inflation by 0.5 percent through buffered supplies, enhancing competitiveness in a region where agriculture drives 10-15 percent of GDP.
Tax justice and consumer relief
With inflation straining households, lawmakers are considering cutting the value-added tax (VAT) from 12 percent to 10 percent, alongside exemptions for utilities and fuel. Proponents observe this could give families up to ?7,000 more disposable income per year.
‘The VAT is regressive, hitting the poor and middle class the hardest,’ Batangas Rep. Leandro Leviste said in filing House Bill 4302. ‘Lowering it makes our tax system more progressive.’
The House Committee on Ways and Means has called on the Legislative-Executive Development Advisory Council (LEDAC) to look into the proposal to lower the value-added tax (VAT) rate from 12 percent to 10 percent, while a lawmaker pushed for the inclusion of a ‘wealth tax’ as an offset measure.
Leviste estimated that lowering the VAT by 2 percent would result in an average of P7,000 of additional disposable income per Filipino family per year.
The bill seeks to amend RA 9337 or the Reformed VAT (R-VAT), which was passed by Congress on May 24, 2005.
Other lawmakers, like Reps. Renee Co and Antonio Tinio want to roll back VAT on fuel, power, water, and tolls-taxes imposed under the TRAIN law of 2018 through House Bill 215.
‘The present VAT law, which corners poor end-users, cannot be said to be fair, just, equitable and progressive,’ they argued.
It exempts petroleum and utilities, caps food VAT at 5 percent, and phases out cuts over two years. As of October 2025, it remains in committee, overshadowed by VAT debates but aligned with inflation concerns.
Fiscal managers warn, however, that tax relief without new revenue sources, such as a wealth tax, risks widening the deficit.
The power puzzle
ELECTRICITY rates remain among the highest in Asia. Critics like Rep. Presley De Jesus say reforms to the Electric Power Industry Reform Act (EPIRA) are needed to end ‘sweetheart deals’ and cross-ownership that keep power prices inflated.
‘As long as [this] practice remains, truly competitive electricity rates will continue to elude consumers,’ De Jesus stressed.
For him, revisiting EPIRA is not just about lowering bills for households-it’s about making the Philippines more attractive to businesses and industries that drive jobs and growth.
Rate cuts of 10 to 15 percent could save P50 billion yearly, averting shortages for 10 million consumers. The Philippine Institute for Development Studies (PIDS) projects enhanced competitiveness, but renewable integration is vital for sustainability.
Industry groups counter that the focus should be on accelerating renewable energy and improving transmission lines, not rewriting EPIRA.
For lawmakers, the test is clear: deliver these reforms before 2028 and be remembered as the Congress that modernized the economy. Fail, and the 20th Congress risks being seen as yet another chapter of ambitious promises cut short by political realities.
One thing is certain: the clock is ticking, and the legacy of this Congress will be measured not by the bills it files, but by the boldness-and success-of the reforms it enacts.
Support for MSMEs
IN a bid to bolster the backbone of the Philippine economy, Representatives Rufus B. Rodriguez and Maximo B. Rodriguez, Jr. have introduced House Bill 1490, aiming to amend Republic Act No. 6977, known as the Magna Carta for Micro, Small, and Medium Enterprises (MSMEs).
This legislative initiative seeks to enhance the support mechanisms for MSMEs, which constitute 99.63 percent of the country’s business establishments, according to the Philippine Statistics Authority. The bill seeks to amend RA 9501 of 2008.
House Bill 1490 contains several key provisions designed to strengthen support for MSMEs in the Philippines. One of its main measures is the extension of mandatory lending provisions to MSMEs for another 10 years without further extension, ensuring that these enterprises continue to have sustained access to vital financial resources.
The bill also seeks to increase the capitalization of the Small Business (SB) Corporation and bolster its guarantee program, thereby enhancing the financial support available to MSMEs.
Additionally, it introduces preventive measures through the creation of an enterprise rehabilitation fund, which aims to assist businesses affected by disasters and other crises, promoting resilience, and long-term sustainability within the sector.
Rep. Rufus B. Rodriguez emphasized the significance of this bill, stating, ‘This proposed legislation is expected to significantly impact the MSME sector, aligning with the economic and societal priorities of the administration.’ He further noted that the amendments address the critical need for improved access to financing and support for MSMEs.
The introduction of House Bill 1490 marks a proactive step towards empowering MSMEs, ensuring their continued growth and contribution to the nation’s economic development.