Senator Mark Villar has filed a bill seeking to exempt micro, small and medium enterprises (MSMEs) from paying the Minimum Corporate Income Tax (MCIT), saying the proposal will help businesses expand, create jobs and recover from rising operating costs.
Senate Bill No. 2362 seeks to amend the National Internal Revenue Code by exempting qualified MSMEs from the MCIT to allow them to retain more capital for expansion and business growth.
According to Villar, MSMEs accounted for 99.63 percent of all registered business establishments in the country in 2024 and generated jobs for more than 63 percent of the national workforce, making them one of the biggest contributors to the economy.
“Our MSMEs are the backbone of the Philippine economy. They provide livelihood to millions of Filipinos, fuel local industries, and keep our communities economically active. By giving them meaningful tax relief, we allow them to reinvest in their businesses, create more jobs, and contribute even more to our country’s development,” Villar said.
The senator said the proposed tax exemption would help small businesses cope with inflation, rising production costs and other economic pressures while strengthening local industries and creating more employment opportunities nationwide.IMT
