Philippines to boost middle-class support and protect 6.5M Filipinos lifted from poverty

The Marcos administration has announced plans to strengthen support for the middle class and protect 6.5 million Filipinos who were recently lifted out of poverty. Executive Secretary Ralph Recto stated that the government aims to prevent these individuals from sliding back into poverty by focusing on job creation, income increases, and reducing living costs.

According to government data, poverty incidence fell from 15.5% in 2023 to 9.7% in 2025, reducing the number of poor Filipinos from 17.5 million to 11 million. This progress places the country three years ahead of its target to reach single-digit poverty by 2028.

To mitigate risks from the Middle East crisis and climate disruptions, the administration intends to fast-track infrastructure projects and pursue several legislative measures. These include raising the annual personal income tax exemption to P350,000, exempting small businesses from the Minimum Corporate Income Tax, granting a general tax amnesty, and abolishing the travel tax. The government is also seeking to prevent electric utilities from passing system-loss charges to consumers.