DOF Withdraws Capital Gains Tax Hike Proposal Amid Strong Fiscal Performance

The Department of Finance (DOF) has officially withdrawn its proposal to raise capital gains, donor’s, and estate taxes from 6% to 10%, citing solid revenue performance and fiscal stability.

Albay Representative Joey Salceda confirmed that the GROWTH Bill — a revised version of the Duterte-era PIFITA — has been shelved. The DOF’s April 29 letter explained that the move comes in light of unexpectedly strong tax collection and continued progress toward fiscal consolidation goals.

Finance Secretary Ralph Recto noted that with a 13.55% surge in tax collections in Q1 2025, totaling P931.5 billion, there is no pressing need for new tax measures. The Bureau of Internal Revenue and Bureau of Customs also reported significant year-on-year gains.

“We’re managing our finances responsibly, supporting government programs, and sustaining economic growth without burdening taxpayers,” Recto said. He emphasized that the government remains committed to implementing structural reforms like the CREATE MORE Act, EOPT Act, and PPP Code, among others.

Salceda praised Recto’s fiscal strategy, calling it a balance of prudence and economic progress. The DOF also aims to boost non-tax revenue streams to meet its spending goals under the national budget.