Investors to benefit from CMEPA passage - PSE

The Philippine Stock Exchange Inc. (PSE) has welcomed the passage of the Capital Markets Efficiency Promotions Act (CMEPA), a development it said would benefit stock market investors.

- By Richmond Mercurio

The PSE said the immediate reduction of the stock transaction tax (STT) to 0.1 percent from 0.6 percent is a much-awaited reform that is expected to boost trading activity and liquidity in the stock market.

Further, it is seen enhancing the PSE's competitiveness against other foreign markets.

Prior to the enactment of CMEPA, the PSE said it had one of the highest friction costs in ASEAN.

"CMEPA also expands the application of STT to other securities listed and traded through a local stock exchange which lends certainty to the tax regime applicable to the secondary transfer through the stock exchange of asset classes other than equities and facilitates the launch of more products in the local stock market," the stock market operator said.