Mother-and-son tandem Vilma Santos and Luis Manzano have come to the defense of Finance Secretary Ralph Recto, amid growing criticism over the controversial implementation of new tax rates on bank deposit interest.
Following the implementation of Republic Act 12214 or the Capital Markets Efficiency Promotion Act (CMEPA), banks across the Philippines began imposing a 20 percent final withholding tax on interest earned from all peso and dollar deposits—including time deposits—starting July 1, regardless of term length.
Previously, long-term deposits locked in for more than five years were exempt from tax, while short-term deposits were taxed between 5 to 20 percent, depending on the holding period.
The change has drawn strong reactions online, with many Filipinos expressing concern over its potential impact on small investors and ordinary savers with some netizens even directly blaming Recto for the new policy.
“So tatanggapin na lang natin lahat ng maisip na tax ni Ralph Recto? Are we not given a say on all the taxes imposed on us? Grabe pati perang iniipon mo sa bangko may tax na rin. Pambihira,” a Facebook user reacted.
“Itong si Ralph Recto walang alam gawin kun’di mag-imbento ng itatax,” an X user wrote.
“IF YOU WANT 20% tax on bank savings, Ralph “Taxman” Recto, do it to the billionaires and multi-millionaires not our average Filipino working class. Kakapiranggot na nga lang ang pinagpawisang ipon na nakaltasan na ng buwis, bubuwisan mo pa ulit,” another user’s opinion read.
In response, TV host Luis Manzano clarified through a now-expired Instagram Story that Recto is not the author of the law, which has been falsely attributed to him.
“On Sec. Ralph G. Recto? Hindi po siya ang gumawa ng bagong buwis. Sec. Recto’s role is to implement and explain policies clearly and fairly,” Luis wrote, as quoted by Pilipino Star Ngayon.
He added, “Sa huli, ang mahalaga: ‘Babantayan natin kung saan mapupunta ang pera.’”
Luis also advised critics of the law to do their own research, saying, “Google niyo kung sino ang gumawa ng CMEPA.”
It is worth noting that it was, in fact, Albay Representative Joey Salceda, who authored the bill.
Meanwhile, Batangas governor Vilma Santos, Recto’s wife, also appeared to have reacted on the issue after being tagged in a viral Facebook post by online personality Senyora, who jokingly asked the actress: “Madam Vilma Santos-Recto, pwede ba namin makausap yang mister n’yo? May sasabihin lang kami.”
To this, Santos responded: “Ok lang naman Senyora, basta huwag lang tungkol sa FAKE NEWS.”
Furthermore, Malacañang and financial institutions have since clarified that only interest income is being taxed, not the principal savings itself, adding that the 20 percent final tax has existed since 1998 for most deposit types.
During a press briefing, Palace Press Officer Claire Castro described viral claims about the new tax as “fake news” spread by “fake news peddlers and obstructionists” meant to undermine public trust in the government.
She emphasized that the unified tax system under CMEPA will help fund government programs aimed at improving Filipinos’ lives.
“Ang halagang ito ay malaking tulong na sa ating mga kababayan bilang kontribisyon na mapupunta sa programa ng pamahalaan na layunin iangat ang pamumuhay ng bawat isa,” asserted Castro.
