President Ferdinand Marcos Jr. unveiled a broad package of subsidies and tax measures during his State of the Nation Address on Monday, aiming to ease transportation costs and broaden income tax relief.
Among the announced programs, drivers of passenger jeepneys and UV Express units will receive a cash relief component from the AICS program and a diesel subsidy of ten pesos per liter.
Passengers benefit from free rides in some cases or a 20% fare discount, in addition to the standard 20% discount for students, senior citizens, and persons with disabilities.
Metro Manila transit users on LRT2 and MRT3 will enjoy a 50% fare reduction, while terminal, landing, and storage fees at airports and seaports have been temporarily lowered.
At the Philippine International Trade Port, the collection of terminal fees for passenger vehicles has been suspended for three months, and expressway toll fees for passenger vehicles have been reduced by up to about 200 pesos.
Trucks carrying agricultural products and food ingredients on Ro-Ro vessels will see their terminal fee cut from 500 to one peso, and those accredited by the Department of Agriculture can use expressways without toll fees.
The administration has earmarked more than 60 billion pesos for these initiatives through the end of the year.
Tax relief plans include expanding the income tax exemption to individuals earning 350,000 pesos or less annually, eliminating the minimum corporate income tax for small businesses, and granting amnesty for unpaid income, estate, donor, and value‑added taxes along with associated penalties.
Despite these measures, the country’s fiscal space remains constrained, with a projected 1.66 trillion‑peso deficit for 2026 and interest payments rising from 282 billion pesos in the first half of 2023 to 484 billion pesos in the first half of 2026.
Inflation reached 6.8% in the second quarter of 2026, the highest in East Asia, largely driven by higher agricultural costs and fuel prices.
Analysts argue that the subsidies have largely benefited urban transport and provincial buses, while rural machinery operators have received limited support, suggesting that a temporary suspension of excise taxes on fossil fuels could better address inflation pressures.
Following the address, the president visited Davao to inspect government projects, reinforcing a governance approach that seeks to support all regions without favoritism.
Such visits aim to provide a deeper understanding of local conditions that differ from the dynamics of Metro Manila and central Luzon.
