00:00To give the economy a much-needed lift, the Marcus Jr. administration hits the ground running today with the Capital Markets Efficiency Promotions Act.
00:08Marked by a special bell ringing at the Fulton Stock Exchange, the law aims to clear the way for smoother processes and bring investors on board for a more competitive market, as our Kenneth Paciente reports.
00:20With the aim of further growing the country's economy, the implementation of the Capital Markets Efficiency Promotion Act, or CIMEPA, signed by President Ferdinand R. Marcos Jr. last May, officially begins today.
00:33Three, two, one!
00:41Earlier, the President led the special bell ringing at the Philippine Stock Exchange, signaling the implementation of the said law.
00:48Under this law, processes will be simplified, and the efficiency of operations in capital markets will be enhanced to encourage more investors to grow their money or equity in the country.
00:58Before this law, investing in stocks meant paying a tax, as Mon was explaining, paying a tax of 0.6%, six times higher than our neighbors in Singapore, Malaysia, and certainly the highest in Asia.
01:14Under CIMEPA, that rate has been reduced to 0.1%.
01:17For a first-time investor, buying a 10,000 peso worth of stock, this means paying 10 pesos in tax, instead of 60.
01:26This will encourage more Filipinos to invest in our capital markets.
01:30One of the main provisions of the law is the removal of the documentary stamp tax on mutual funds and unit investment trust funds.
01:38Also included is the establishment of a 20% final tax rate on the interest income of investors.
01:44The law is also a significant development for employees, especially since under the new law, private employers who contribute to the personal equity and retirement accounts or pera of their employees are incentivized.
01:57If the company's contribution is greater or matches the share put in by the employee, the company may avail of an additional 50% tax deduction based on the actual contribution made.
02:06CIMEPA removes certain exemptions to enhance fairness in our tax system.
02:13Government-owned or controlled corporations are now generally subject to the same passive income taxes as other institutions.
02:20From now until the year 2030, CIMEPA is projected to generate over 25 billion pesos in net revenue, a substantial sum that can help fund the building of roads, bridges, hospitals, schools, other social safety net programs as well.
02:43It shows that our financial system is becoming more equitable and structured for long-term stability.
02:50The president clarified this reform is not just for the wealthy, professionals, or stock traders, but for every Filipino who dreams of greater financial security.
02:59He said, this strengthens the capacity of small entrepreneurs, young professionals, and OFWs to start investing using the money they worked hard for toward a more financially secure future.
03:09Para sa bawat Pilipino, ito po ang layunit ng pamahalaan.
03:15Alisin ang mga balakid at palawakin ang mga oportunidad para sa ating pag-uunlan.
03:21Indeed, this act allows Filipinos to be true participants in our nation's economic growth.
03:27This law enhances our competitiveness in the ASEAN region and strengthens the foundation of a capital market that can thrive on the global stage.
03:37The president instructed the PSE to remove bureaucratic hurdles, speed up processes, and reduce transaction costs under their jurisdiction,
03:45and encourage stakeholders to exercise transparency and honesty in the implementation of the law.
03:50Kenneth Paciente from the National TV Network for a New and Better Philippines.
