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Saturday, May 31, 2025 Vol. 20 No. 230
BSP SEES MAY INFLATION SLOWEST SINCE OCT ’19
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By Cai U. Ordinario
HE increase in commodity prices may be flat in May as ample rice and fish supply eased inflationary pressures during the month, according to the Bangko Sentral ng Pilipinas (BSP).
Board will continue to take a measured approach in adjusting the monetary policy stance in line with its price stability objectives conducive to balanced and sustainable growth of the economy and employment,” BSP said. Earlier, the BSP said it is considering two more 25-basis-point cuts in key policy rates this year given the slowdown in inflation
KEY FACTORS BEHIND SLOWER PRICE GROWTH IN MAY 2025 FACTORS EASING INFLATION: n Ample rice and fish supply n Lower oil prices n Decreased electricity rates n Peso appreciation OFFSETTING PRESSURES: n Higher vegetable prices n Increased meat prices
and rise in global uncertainties. BSP Governor Eli M. Remolona Jr. said in a briefing that the recent slowdown in inflation has
given the Monetary Board more room to introduce reductions in the policy rate. The next meeting of the Monetary Board is slated for June 19 where, Remolona said, a rate cut is on the table. However, Remolona said this may not necessarily be consecutive cuts. The uncertainties in the global economy, Remolona said, is one of the major factors in the monetary policy setting of the BSP. These are causing BSP to tread monetary policy carefully (See: https://businessmirror.com.ph/2025/05/24/jitterswiden-elbow-room-for-rate-cuts/).
DOF projects ₧25-B net revenue with CMEPA By Reine Juvierre S. Alberto
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HE Philippines stands to gain P25 billion in net revenues within five years through a new law that standardizes taxes on interest income, stock transactions and documentary stamps, in its bid to strengthen capital markets. The Department of Finance (DOF) announced on Friday that President Ferdinand R. Marcos Jr. signed into law Republic Act No. 12214, or the Capital Markets Efficiency Promotion Act (CMEPA), on Thursday night. The new law is projected to generate over P25 billion from 2025 to 2030 and reduce the country’s fiscal deficit to 3.8 percent of GDP by 2028. CMEPA will modernize the tax system on passive income, making it more competitive, regionally aligned and investor-friendly, according to the DOF. As such, the law standardizes the tax on interest income at 20 percent to “promote equity and
eliminate tax arbitrage.” It also reduces the Stock Transaction Tax (STT) from 0.6 percent to 0.1 percent and the Documentary Stamp Tax (DST) on the original issue of shares of stock from 1 percent to 0.75 percent. The law further exempts from DST the original issuance, redemption, or transfer of mutual fund shares, as well as certificates or proof of participation in mutual funds or investment trust funds. “These measures are expected to cut transaction costs, encourage market participation and financial planning, boost market liquidity, make the country’s equities market regionally competitive, and increase capital market growth,” the DOF said. To ensure equitable taxation of similar financial transactions, CMEPA also imposes a uniform 0.75 percent DST on bonds, debentures, and certificates of stock or indebtedness issued in foreign countries, regardless of jurisdiction.
DEPARTMENT OF SCIENCE AND TECHNOLOGY
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PHL EXPORT EARNINGS GROW 7% TO $6.75B IN APRIL 2025 TOP 5 EXPORT MARKETS (APRIL 2025) Country
Value
Share
YoY Growth
USA
$1.03B
15.2%
5.9%
Hong Kong
$918.7M
13.6%
10.8%
Japan
$893.6M
13.2%
6.3%
China
$697.6M
10.3%
1.7%
Canada
$478.5M
7.1%
931.3%
T DEPARTMENT of Agriculture Secretary Francisco P. Tiu Laurel Jr. and Trade Secretary Ma. Cristina A. Roque inspect meat prices at Mega Q Mart in Quezon City on March 31, 2025. This follows the government’s price control measures amid easing inflation and ample food supply. NONOY LACZA
BSP Governor Eli M. Remolona Jr.: “The recent slowdown in inflation has given the Monetary Board more room to introduce reductions in the policy rate.”
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020)
Note: Canada’s 931.3% growth is the highest among top markets.
BM Graphics: Ed Davad
In its latest month-ahead inflation forecast, BSP said it projects inflation to settle within 0.9 and 1.7 percent in May 2025. It may be noted that based on data from the Philippine Statistics Authority (PSA), this is the lowest since the 0.6 percent posted in October 2019. “Easing prices of rice and fish due to favorable domestic supply conditions in conjunction with lower oil prices, electricity rates, and the peso appreciation contributed to the downward price pressures for the month. These could be offset in part by higher prices of vegetables and meat items,” BSP said. If inflation in May settles within the forecast of the BSP, this will be the third consecutive month this year when inflation is below the target of the government. The Development Budget Coordination Committee (DBCC) aims to keep inflation within 2 to 4 percent until 2028, the year the President steps down from office. “Going forward, the Monetary
EJAP JOURNALISM AWARDS
BM Graphics: Ed Davad
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
WHAT CHANGED UNDER CMEPA? Tax Type
Before
After
Notes
Interest Income Tax
Varied
Standardized to 20%
Promotes equity
Stock Transaction Tax (STT)
0.6%
0.1%
Cuts trading costs
Doc. Stamp Tax (DST) on shares
1%
0.75%
Encourages issuance
DST on mutual fund shares
Applicable
Exempted
Promotes financial planning
DST on foreign-issued bonds & securities
Varied
Uniform 0.75%
Consistency in treatment
Finance Secretary Ralph G. Recto: “By making investment channels clearer, more affordable, and more accessible—especially for small investors—we open the door to greater financial inclusion for our people.”
CMEPA also defines “passive income” and clarifies and expands the definition of “securities” to ensure consistent tax treatment across various financial instruments. Moreover, private employers contributing an amount equal to or greater than their employees’ contributions to Personal Equity and Retirement Accounts (PERA), as provided under Republic Act No. 9505, are entitled to an additional 50 percent tax deduction on their actual contributions. The tax exemption for pickup trucks not used for livelihood purposes was also repealed under CMEPA. Continued on A2
HE country’s export earnings grew by 7 percent in April, the slowest since December 2024, according to data released by the Philippine Statistics Authority (PSA) on Friday. Data showed the country’s export receipts increased to $6.75 billion in April 2025 from the $6.3 billion total export sales in the same month of the previous year. The PSA said in March 2025 and April 2024, the total export sales registered annual increases of 8.7 percent and 28.2 percent, respectively. PSA said the year-to-date annual total value of exports between January and April 2025 amounted to $26.87 billion. This was 9.5 percent higher than the $24.54 billion recorded in the same period last year. “The commodity group with the highest annual increment in the value of exports in April 2025 was other manufactured goods with $497.54 million,” the PSA said. “This was followed by bananas (fresh) with an annual increase of $30.56 million, and coconut oil with an annual increment of $28.47 million.” By major trading partner, the country’s top export market was the United States of America, which cornered $1.03 billion or 15.2 percent of the country’s total exports in April 2025. In the first four months, exports to the US reached $4.26 billion or 15.9 percent of total earnings. Continued on A2
Ledac tags 7 priority bills for 19th Congress passage
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HE Legislative-Executive Development Advisory Council (Ledac) is pushing for the passage of seven priority bills in the remaining six session days of the 19th Congress. In a statement, the Department of Economy, Planning, and Development (DepDev) said the priority measures are on connectivity, investment, and healthcare. DepDev said the bills are under the Ledac Common Legislative Agenda and are scheduled for deliberation in the Bicameral Conference Committee. Continued on A2
“We firmly believe this measure holds immense promise in transforming the lives of all Filipinos by ensuring reliable and affordable Internet access.” — Balisacan on the Konektadong Pinoy Act
WE’RE OPEN! SM Supermalls executives welcome the Laoag community to its 88th mall, the first in Ilocos Norte—SM City Laoag—led by SM Supermalls President Steven Tan and SM Prime Holdings President Jeffrey Lim, with Ilocos Norte Governor Matthew Manotoc. Weekend activities abound for local residents and tourists, including mini hot-air balloon, a kite fest, fireworks, and more. SM SUPERMALLS
PESO EXCHANGE RATES n US 55.7030 n JAPAN 0.3865 n UK 75.1823 n HK 7.1034 n CHINA 7.7511 n SINGAPORE 43.2880 n AUSTRALIA 35.8839 n EU 63.3455 n KOREA 0.0407 n SAUDI ARABIA 14.8521 Source: BSP (May 30, 2025)