Batangas Governor Vilma Santos and her son, TV host Luis Manzano, have spoken out in defense of Finance Secretary Ralph Recto, who has come under fire following the implementation of a new tax policy affecting interest income from bank deposits.
Criticism flared online after the enforcement of Republic Act 12214, also known as the Capital Markets Efficiency Promotion Act (CMEPA), which imposes a uniform 20 percent final withholding tax on all interest earned from peso and dollar deposits, including time deposits, effective July 1.
Previously, long-term deposits held for more than five years were tax-exempt, while shorter terms were taxed on a sliding scale. The revised policy has sparked outrage from many netizens, with some blaming Recto directly for the perceived burden on small savers and ordinary workers.
In response, Manzano clarified in an Instagram Story that Recto is not the author of the controversial measure.
“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,” he was quoted as saying in Pilipino Star Ngayon.
He added, “Sa huli, ang mahalaga: ‘Babantayan natin kung saan mapupunta ang pera.’” Manzano also encouraged critics to verify the facts themselves, pointing out that the law’s actual author was Albay Representative Joey Salceda.
Governor Santos, Recto’s wife, echoed a similar sentiment when she responded to a viral Facebook post from online personality Senyora, who jokingly requested a word with the Finance Secretary. “Ok lang naman Senyora, basta huwag lang tungkol sa FAKE NEWS,” she replied.
Meanwhile, Malacañang has stepped in to clarify widespread confusion, asserting that the 20 percent tax applies only to interest earned—not the deposit principal—and that such a rate has long been in place for most accounts.
Presidential Communications Office Assistant Secretary Princess Castro denounced viral misinformation as deliberate attempts to sow distrust.
“Ang halagang ito ay malaking tulong na sa ating mga kababayan bilang kontribusyon na mapupunta sa programa ng pamahalaan na layunin iangat ang pamumuhay ng bawat isa,” Castro said in a press briefing, reinforcing that the policy aims to support essential government programs.
