Capital gain

 DOF’s Plan to Raise Capital Gains Tax Worries Ordinary Filipinos

The Department of Finance (DOF), led by Secretary Ralph Recto, has proposed increasing the capital gains tax (CGT) on real estate sales from 6% to 10% under the GROWTH bill. If approved, this would take effect from 2025 to 2030, then revert to 6% unless extended by Congress.

The DOF says the move targets the wealthy and aims to raise ₱300 billion in five years. But many fear the tax hike could hurt ordinary Filipinos, especially the middle class, who make up around 22% of the population, while the ultra-rich represent only a tiny fraction.

Potential Effects on the Public:

Lower net from property sales – Inherited land or modest homes could be taxed more heavily.

Less attractive for small investors – Reduced returns may discourage long-term investing.

Higher property prices – Sellers may pass the tax burden onto buyers.

Middle class hit harder – Lacking access to tax-saving tools, they may carry more of the load.

Slower real estate activity – Fewer transactions could impact jobs in the property sector.

As the proposal is being reviewed in Congress, many are calling on the government to consider its impact on the general public—not just the wealthy.