DOF: New law makes investing easier and cheaper for Filipinos

The Department of Finance (DOF) is urging Filipinos to explore more investment opportunities, now that a new law has made investing cheaper and more accessible.

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The Capital Markets Efficiency Promotion Act (CMEPA) aims to help ordinary Filipinos grow their savings through smarter and more affordable investments.

According to the DOF, CMEPA lowers the costs and taxes related to investing, which have long discouraged many from participating in the stock market and other financial products.

"There is no truth that CMEPA discourages people from saving and investing," said Finance Secretary Ralph G. Recto. "Actually, CMEPA is not just a revenue bill, but an act to boost our capital markets and allow for greater participation, especially among ordinary Filipinos. Investing is now not just for the rich, but is for every Filipino who dreams of financial security and a better future."

Lower Taxes, Bigger Savings

One of the biggest changes brought by CMEPA is the reduction of the Stock Transaction Tax (STT). Previously, the Philippines had the highest STT in Southeast Asia at 0.6%, making stock trading more expensive. Under CMEPA, this tax has been reduced to 0.1%, significantly lowering the cost of trading shares in the Philippine Stock Exchange (PSE).