Marcos directs SEC to reduce transaction costs

PRESIDENT Ferdinand R. Marcos, Jr. directed the Securities and Exchange Commission (SEC) to streamline its processes and slash transaction costs to support the implementation of the Capital Markets Efficiency Promotion Act (CMEPA) that took effect on Tuesday.

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"To ensure the successful implementation of this reform, I direct the SEC to streamline its procedures, remove bureaucratic bottlenecks, (and) reduce transaction costs within its control," Mr. Marcos said at the Philippine Stock Exchange (PSE) in Bonifacio Global City.

"Undertake the necessary changes to fulfill your responsibilities in these changing times," he added.

The President on Tuesday attended the special bell-ringing ceremony at the PSE to mark the effectivity of Republic Act No. 12214 or CMEPA.

Signed by Mr. Marcos on May 29, one of the law’s provisions is the reduction of the stock transaction tax (STT) to 0.1% from the previous 0.6%, a move that is expected to boost stock market activity.

"For a first-time investor buying a P10,000 worth of stock, this means paying P10 in tax instead of P60. This will encourage more Filipinos to invest in our capital market," Mr. Marcos said.