Government moves to protect 6.5 million Pinoys lifted from poverty

MANILA, Philippines — The government will make sure 6.5 million Filipinos from the middle class will not slide back into poverty by accelerating programs aimed at creating more jobs, raising incomes and lowering cost of living, Executive Secretary Ralph Recto said yesterday.

Recto’s pronouncement came after the release of a recent survey by the Philippine Statistics Authority (PSA) showing poverty incidence dropping from 15.5 percent or 17.5 million in 2023 to 9.7 percent or 11 million in 2025.

“That is the marching order of the President: support the middle class and prevent 6.5 million Filipinos from sliding back into the zone of poverty,” Recto said.

“The work goes on,” he added as the Middle East crisis continues, posing risks to fuel and food prices, trade, employment and economic growth.

“Then there are climate disruptions like the projected strong El Niño which is causing too much rainfall in Luzon but too little of it in Mindanao,” he said.

“Our next challenge is to ensure that their quality of life continues to improve... and more will be lifted out of poverty. And we will protect our middle class even more,” he said.

The administration is pushing for the passage of measures designed to lower household expenses, increase disposable income, strengthen the middle class and spur consumption.

These include raising the personal income tax exemption of individuals to P350,000 annually, freeing up to P17,500 every year per worker, and converting tax payment to purchasing power.

Other priority bills of the administration are the exemption of small businesses from the Minimum Corporate Income Tax, a general tax amnesty and the abolition of the travel tax.

Marcos has also asked Congress to amend the Electric Power Industry Reform Act or EPIRA to bar distribution utilities and electric cooperatives from passing system loss charges to ordinary consumers.

He has also pushed for the passage of the Sariling Kuryente Act, which makes the installation of solar and battery systems simple, easy and cheap for households.

Recto said the administration would continue prioritizing price stability measures to keep food, fuel, electricity and other basic necessities affordable, while continuing targeted support for sectors most vulnerable to economic shocks.

Economists have challenged the PSA report on poverty alleviation, saying it is based on outdated metrics.

The latest survey on self-rated poverty conducted by pollster Social Weather Stations Inc. in June showed 49 percent of Filipino families rating themselves as poor.

PEB in Davao City

Meanwhile, the administration’s economic managers convened in Davao City yesterday for the Philippine Economic Briefing, where the country’s economic outlook, key reforms and investment priorities were highlighted while showcasing opportunities across Mindanao’s strategic sectors, including infrastructure, agriculture, energy, manufacturing, tourism, logistics and digital services.

“Davao is an important part of the Philippine growth story. It is the economic center of Mindanao. The region has been connecting businesses, employees, capital and markets,” Finance Secretary Frederick Go said in his keynote address.

Go emphasized the government’s role in creating the conditions for sustained growth to translate into more jobs, investments and opportunities for Filipinos.

He highlighted reforms aimed at reducing friction costs and making it easier for businesses to operate and expand, including lower registration fees at the Securities and Exchange Commission, longer importer accreditation validity at the Bureau of Customs and reduced Creditable Withholding Tax rates for local importers and manufacturers at the Bureau of Internal Revenue. — Diana Lhyd Suelto