Senator Erwin Tulfo to seek tax holiday.
Senate Blue Ribbon Committee acting chair Senator Erwin Tulfo proposed a month of no tax as “financial relief” amid the issues.
From mere rumors to being out in the open, allegations that politicians and government officials are profiting from public infrastructure projects are nothing new. But now, these claims are no longer just whispers; they’ve begun to surface publicly.
From July 2022 to May 2025, the Marcos administration carried out 9,885 flood control projects with a total value of ₱545.64 billion. ₱100 billion from the amount went to 15 contractors, and five of which, such as Legacy Construction Corporation, Alpha & Omega, St. Timothy, EGB Construction, and Road Edge Trading, had projects in almost all regions nationwide.
To recall, it was President Bongbong Marcos who named the 15 contractors involved in the anomalous flood control projects. Apart from contractors, several politicians and government officials were also named and dragged into the mess.
Where most flood control projects were built:
- Metro Manila (1,058 projects) – P52.57 billion
- Central Luzon (1,617 projects) – P98.01 billion
- Bicol Region (866 projects) – P49.61 billion
Amid the mess, Sen. Erwin Tulfo, acting chair of the Senate Blue Ribbon Committee, proposed a one-month income tax holiday as a form of “financial relief” amid the controversy surrounding the flood control projects.
He filed the Senate Bill No. 1446, known as the “One-Month Tax Holiday of 2025.” This aims to ensure that the benefits go directly to the working population.
In a statement, Senator Tulfo said, “The exposure of alleged anomalies on flood control projects, involving billions of pesos in public funds have gravely eroded public trust in government fiscal stewardship. The Filipino people have raised a clear and resounding clamor— ‘Ibalik ang pera ng bayan. Ibaba ang tax.”
He then added, “The welfare of the people is the supreme law. It is therefore just and necessary that the State respond by providing tangible relief to the very taxpayers who sustain it.”
Under Tulfo’s proposal, the one-time, one-month income tax break will apply to employees on their first payday after the bill is approved. For mixed-income earners, only the part of their income that comes from employment will be tax-free.
This, however, will not cover mandatory contributions to the Government Service Insurance System, Social Security System, PhilHealth, Home Development Mutual Fund, and loan amortizations and other payments voluntarily authorized by the employee.
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