President Ferdinand R. Marcos Jr. ordered the Department of Public Works and Highways (DPWH) to reduce the cost of construction materials by up to 50 percent. This decisive action is expected to generate significant savings for the government—ranging from PhP30 to PhP45 billion—which will be immediately reallocated to vital sectors: health, education, and food.
President Marcos announced the directive at the Villamor Air Base in Pasay City, before he departed for the 47th Association of Southeast Asian Nations (ASEAN) Summit in Malaysia. He reaffirmed his commitment to strengthening a “more responsive, accountable, and transparent” bureaucracy dedicated to serving the Filipino people.
The President highlighted that a DPWH review uncovered that key construction materials, including asphalt, steel bars, and cement, were overpriced by as much as 50 percent.
“To ensure that the costs of DPWH will reflect the costs of the market and to ensure that the people’s money is correctly spent, I have directed the DPWH Secretary to bring down the cost of materials by as much as 50 percent,” the President stated. “The resulting savings in capital outlay spending will be at least PhP30 to 45 billion,” funds that will now be channeled to essential social services.
In a broader push for accountability, President Marcos announced that the Bureau of Internal Revenue (BIR) will recalibrate its focus to ensure that individuals involved in irregularities surrounding flood control projects are held fully accountable under the law.
The shift in focus aims to uphold fairness in the tax system. The BIR is moving its auditing efforts away from micro, small, and medium enterprises (MSMEs) and law-abiding large corporations to concentrate on “these questionable projects that we have been able to find.”
To provide relief to taxpayers burdened by complex compliance, the President noted that the Department of Finance (DOF) has instructed the BIR to:
Explore exempting specific taxpayer segments from the obligation to withhold and remit creditable withholding taxes.
Simplify and lower the applicable creditable withholding tax rates.
Furthermore, the DOF and BIR have submitted proposals to increase the ceilings for tax-exempt de minimis benefits—small, non-taxable perks provided by employers—to promote employee well-being. This includes a proposal to raise the tax-exempt uniform and clothing allowance ceiling from PhP7,000 to PhP8,000 per year.
“These changes are not just about numbers—they are about fairness and dignity in the workplace,” President Marcos emphasized.
On the critical issue of food prices, the Chief Executive assured the public that the government is actively addressing the cost of goods. The government is strictly enforcing and monitoring the maximum suggested retail price for imported rice and remains committed to the PhP20 per kilo rice program to ensure affordable rice is accessible to Filipinos.
The Department of Trade and Industry (DTI) is also working closely with manufacturers to temper prices, particularly as the holiday season approaches.
