Sona 2026: Relief, finally?

MANILA, Philippines — President Ferdinand Marcos Jr.’s penultimate State of the Nation Address (Sona) came at a time when Filipino households remain vulnerable to forces well beyond the country’s control.

Although inflation has moderated from previous highs, food, electricity and transportation remain major household expenses. The US-Iran conflict has also renewed concerns over global oil prices, highlighting how geopolitical events can quickly influence domestic fuel costs and, eventually, the prices of goods and services.

READ: PH 2026 inflation forecast cut to 5.1%

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The price of global shocks

As of July 28, domestic fuel prices have risen by a net P53.72 per liter for gasoline, P57.73 for diesel and P52.69 for kerosene based on cumulative pump-price adjustments this year. Those increases filter through freight, public transportation and electricity generation, affecting household spending.

READ: Oil prices jump above 3.5% on renewed US-Iran fighting

Against this backdrop, Marcos outlined tax and power sector proposals that could affect consumers’ disposable incomes and monthly expenses.

More money in our pockets

Among the President’s key economic proposals is raising the annual tax-exempt income threshold to P350,000 from P250,000. If enacted by Congress, the measure would allow more workers to keep a larger portion of their earnings by adjusting income tax brackets that have remained unchanged despite rising living costs.

Marcos also proposed exempting micro and small enterprises from the minimum corporate income tax and introducing a one-time tax amnesty for certain unpaid tax liabilities. The proposals aim to reduce the tax burden on smaller businesses while encouraging tax compliance.

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For consumers, the direct effect of the income tax proposal would be higher take-home pay for qualified workers. The business-related measures, meanwhile, could support employment and investment, although their broader impact on consumer prices and economic activity will depend on implementation and broader economic conditions.

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The proposals also carry fiscal implications. Lower income tax collections and tax incentives could reduce government revenues in the near term, while proceeds from a tax amnesty are temporary by nature. Whether these measures eventually are eventually offset by stronger economic activity, improved tax compliance and a broader tax base will also depend on their implementation and the economy’s overall performance.

For consumers, the math is simple: lower taxes mean bigger take-home pay at a time when household budgets are under mounting pressure. It will not bring down inflation, but it could give workers something equally important—more room to absorb higher everyday expenses.

Cutting the power bill

Marcos also called for a review of Republic Act 9136 or the Electric Power Industry Reform Act (Epira) of 2001 and proposed removing system loss charges from consumers’ electricity bills.

System loss refers to electricity lost during transmission and distribution because of technical limitations and other factors. Under the current framework, utilities may recover a portion of these losses by passing the charges on to consumers.

Removing or reducing system loss charges could lower electricity bills, although this will depend on the final legislation and how regulators implement any changes.

The broader review of Epira could also reopen discussions on electricity pricing, competition, investment and consumer protection more than two decades after the law restructured the power industry. For consumers, the impact of any amendments will likely be assessed through changes in electricity prices and service reliability.

What Comes Next

The tax and electricity proposals address two areas that directly affect household finances—take-home pay and monthly utility expenses.

At the same time, the announcements mark the beginning rather than the conclusion of the policy process. Most of the proposals require legislation, while others will depend on implementing rules and regulatory action before consumers experience any measurable impact.

The recent volatility in global oil markets has underscored how quickly external developments can affect Philippine households through fuel, transport, food and electricity costs. While the Philippines cannot control global events, domestic policy can influence how consumers and businesses absorb those external shocks.

Whether these proposals ultimately translate into lower household costs and higher disposable incomes will depend on how quickly Congress acts, how regulators implement the reforms and how the broader economy responds. INQ