The Securities and Exchange Commission (SEC) is endorsing a proposal aimed at reducing taxes on stock transactions, with the objective of invigorating the country’s capital market.
The SEC has voiced its support for House Bill No. 8958 or the Capital Markets Efficiency Promotion Act, which seeks to slash taxes on stock transactions to entice more investors into the market.
The bill, authored by Albay 2nd District Rep. Joey Salceda, targets a reduction of the stock transaction tax from the current rate of 0.6 percent to a mere 0.1 percent of the stock’s value. Additionally, it proposes a decrease in the tax on dividends for foreign non-residents from 25 percent to 10 percent.
SEC chairman Emilio Aquino expressed the Commission’s appreciation for legislative efforts to fortify the capital market.
He underscored the financial sector’s pivotal role in advancing the Philippine economy and enhancing the quality of life for its citizens.
Aquino said that the SEC would collaborate closely with lawmakers to ensure that new laws and policies would align with the market’s requirements and investor demands while maintaining a balanced regulatory role.
In a bid to stimulate greater investor participation in the capital market, the SEC recently implemented measures such as shortening the settlement cycle from three days to two days.
It also empowered funding portals to function as registrars for both qualified institutional and individual buyers, streamlining the application process and eliminating the need for third-party institutions.