A rare united front of major business and labor organizations has called on government to ease taxes on essential goods, warning that sustained price pressures on food, fuel, and utilities are weakening both household purchasing power and business viability.
The Employers Confederation of the Philippines (ECOP), Federation of Free Workers (FFW), Philippine Chamber of Commerce and Industry (PCCI), Philippine Exporters Confederation Inc., (PHILEXPORT) Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO), and Trade Union Congress of the Philippines (TUCP) issued a joint statement urging targeted fiscal relief measures, particularly on value-added tax (VAT) imposed on basic commodities.
“Across the country, workers continue to face increasing prices of food, fuel, transport, and other essential goods, steadily eroding real wages and straining household budgets,” the groups said. “At the same time, employers, particularly micro, small, and medium enterprises, are grappling with higher input costs, weakened demand, and growing uncertainty in sustaining operations and preserving jobs.”
The coalition said the pressure is being felt across sectors, with inflation affecting both consumption and production. It warned that VAT on essentials further compounds affordability issues while adding strain on businesses already dealing with higher operating costs.
The groups proposed a targeted review of VAT coverage, including possible suspension or removal on fuel, electricity, and other basic commodities. They also pushed for stricter monitoring mechanisms to ensure tax reductions are reflected in retail prices.
Among other recommendations, the statement urged government to certify as urgent a proposal increasing the tax-exempt income threshold for middle-income earners, which they said would help improve take-home pay and support domestic demand.
The coalition also called for time-bound fiscal interventions for sectors experiencing extraordinary gains, expanded support for MSMEs and vulnerable households, and a more balanced fiscal strategy that protects revenue without overburdening essential consumption.
They further raised the importance of sustained tripartite dialogue among government, labor, and employers, along with stronger representation in policy-making bodies affecting wages, employment, and enterprise development.
The groups stressed that rising costs have created a cycle that affects both workers and businesses, with weaker demand feeding into job and income instability.
“This is not only a matter of taxation. It is a matter of economic resilience, social stability, and shared responsibility,” the statement said.
The coalition said it remains committed to engaging government in crafting “practical, responsive, and people-centered solutions” to stabilize prices while supporting long-term economic growth.