The Philippine Chamber of Commerce and Industry (PCCI) and the Philippine Exporters Confederation Inc. (PhilExport) have thrown their support behind the Bureau of Internal Revenue's plan to expand its one-time tax abatement program, this time to small taxpayers, according to a report by Inquirer on November 7, 2026. The business groups said the move would help more enterprises settle old tax obligations and clear pending cases that have dragged on for years.
Under the proposal, the program's coverage would extend beyond micro taxpayers to small businesses posting annual gross sales of between P3 million and below P20 million. For a country where MSMEs make up the backbone of local commerce, from provincial hardware stores to Cebu's furniture exporters, that is no small thing.
Thousands of micro enterprises already benefited
The existing One-Time Abatement Program for Micro Taxpayers has already delivered measurable relief, according to the Philippine News Agency, which reported the chamber's endorsement on November 4, 2026. Citing BIR data as of October 24, the PCCI said 3,929 micro taxpayers have benefited so far, with P266.79 million in taxes and penalties abated.
The BIR has received 17,101 applications under the program, of which 15,050 have been approved, the chamber said. Those numbers tell a straightforward story: thousands of small business owners, many of them still recovering from the pandemic's aftermath, chose to come clean rather than stay buried under penalties.
“It gives micro businesses a practical way to resolve old tax liabilities and close pending cases,” the PCCI said in a statement, as quoted by The Daily Chronicle.
Why small exporters are pushing for the expansion
PhilExport echoed the chamber's support, arguing the expansion would extend relief to a larger segment of the business community, particularly small enterprises still navigating post-pandemic recovery and swings in global demand. In a statement reported by BusinessWorld, the group called the scaled-up program “a crucial lifeline to larger segments of the business community.”
The initial rollout under Revenue Regulations No. 4-2026 allowed thousands of micro-entrepreneurs to clear pending tax cases, settle outstanding obligations on favorable terms, and return to regular compliance, PhilExport said. Extending the same terms to small taxpayers would let businesses redirect money now lost to litigation and penalties toward productivity, technological upgrading, and job creation.
The exporters' group also stressed the role of micro, small and medium enterprises in the country's export supply chains. Smaller suppliers, subcontractors, and workshop operators feed the shipments that leave our ports every week; when they struggle with tax cases, the whole chain feels it.
Alignment with the Marcos administration's agenda
PhilExport framed the initiative as consistent with President Ferdinand Marcos Jr.'s directive to improve the ease of doing business and with Finance Secretary Frederick Go's push for a more responsive tax administration. It also commended the BIR's use of simplified filing systems, including the updated Offline eBIRForms Package, to make compliance less painful for ordinary filers.
Both groups praised BIR Commissioner Charlito Martin R. Mendoza for the initiative, citing the relief it could provide to enterprises facing financial pressure and unresolved obligations. The PCCI likewise recognized the bureau's efforts to professionalize tax administration, including the use of letters of authority to ensure audits are properly authorized and conducted with due process. For taxpayers who have long complained about arbitrary assessments, that acknowledgment matters.
What businesses should do before the December 31 deadline
While the formal guidelines for the expansion to small taxpayers have yet to be issued, PhilExport encouraged qualified micro-entrepreneurs to avail themselves of the existing relief before the December 31, 2026 deadline. Waiting for the wider program without checking eligibility under the current one could mean missing the window entirely.
The PCCI, for its part, pledged to spread information through its members, local chambers, and business networks so qualified micro taxpayers understand the availment period and participation requirements. It also called for sustained taxpayer education, clear guidance, and responsive assistance from the BIR to help MSMEs strengthen their compliance practices.
Both PCCI and PhilExport said they stand ready to work with the bureau in disseminating information and helping smaller enterprises meet their tax obligations. The next step belongs to the BIR: issuing the guidelines that will determine how many of the country's small businesses can finally close the books on old tax debts.
Frequently asked questions
Who can benefit from the BIR's expanded tax abatement program?
Under the planned expansion, small taxpayers with annual gross sales of P3 million to below P20 million would be covered, in addition to the micro taxpayers already eligible under the existing program.
How many businesses have used the program so far?
According to BIR data cited by the PCCI, 3,929 micro taxpayers had benefited as of October 24, 2026, with P266.79 million in taxes and penalties abated and 15,050 of 17,101 applications approved.
When does the current abatement program end?
Qualified micro-entrepreneurs have until December 31, 2026 to avail themselves of the existing relief under Revenue Regulations No. 4-2026.