WHAT NOW, WEDNESDAY: After the SONA, What Now?

TAGUIG CITY (MindaNews / 29 July 2026) — The State of the Nation Address has ended.

The applause has faded. The social media debates continue. Supporters celebrate. Critics criticize. Politicians return to their respective camps.

But for ordinary Filipino families, a different question matters.

What now?

Because regardless of our politics, we all wake up to the same realities tomorrow morning.

We still buy rice.

We still pay the electric bill.

We still worry about tuition, medicines, housing loans, transport, and whether our salaries can keep up with rising costs.

The real measure of any SONA is not how many promises were made. It is whether life becomes more affordable, more productive, and more hopeful in the months and years ahead.

The administration announced several welcome interventions: expanded debt relief for farmers, fisherfolk, and small borrowers; financial assistance for vulnerable sectors; and a proposed reduction in income taxes for portions of the middle class. These acknowledge that many Filipinos continue to struggle with the cost of living and deserve relief.

Those are meaningful steps.

But they are not the destination.

They are only the beginning.

Relief versus Reform

The Philippine Chamber of Commerce and Industry (PCCI) captured what many business leaders hoped to hear.

Not simply more assistance.

A long-term economic roadmap.

PCCI President Perry Ferrer emphasized that businesses wanted a clearer strategy to reduce dependence on imported energy, lower electricity and logistics costs, and strengthen the competitiveness of micro, small, and medium enterprises.

He noted that many manufacturers and service providers are already absorbing a significant portion of recent wage increases instead of passing the full cost to consumers. At the same time, businesses continue trimming operating expenses just to remain competitive.

His message was simple.

Government should focus not only on ayuda, but on lowering the structural costs of doing business.

That distinction matters.

Relief helps people survive today.

Reform helps them prosper tomorrow.

The Philippines has become increasingly adept at designing programs that ease today’s burdens.

The greater challenge is creating an economy where fewer Filipinos need assistance because more families enjoy stable jobs, competitive businesses, rising incomes, and affordable living.

Should We Also Talk About VAT?

If reducing the cost of living is truly a national priority, perhaps one of the most important conversations after the SONA is not only about income taxes, but also about consumption taxes.

Economists have recently suggested that government consider reducing the Value-Added Tax (VAT) from 12 percent to 10 percent as one way to cushion households from persistent inflation.

The reasoning is straightforward.

Income tax reductions benefit those who pay income taxes.

VAT affects nearly everyone.

Every Filipino who buys household goods, eats in restaurants, pays for many services, or purchases everyday necessities contributes through VAT. In that sense, reducing VAT could provide broader and more immediate relief, particularly for retirees, informal workers, farmers, and lower-income households who may not benefit significantly from income tax reductions.

Of course, no tax reform comes without trade-offs.

VAT is one of government’s largest and most reliable revenue sources. Lowering it could reduce government collections unless offset by stronger economic growth, improved tax administration, broader compliance, or prudent expenditure management.

This is why the discussion should not be reduced to a simple question of whether taxes should be higher or lower.

The better question is:

Which taxes place the greatest burden on ordinary Filipino families?

Which tax policies encourage investment, productivity, and job creation?

And which combination of tax reforms best supports long-term economic growth while protecting government finances?

These are difficult questions.

But they are exactly the conversations a mature economy should be having.

The Questions Behind the Headlines

Several reports released immediately after the SONA remind us that our challenges extend beyond a single speech.

Regional economic forecasts suggest the Philippines may be among the slower-growing economies in ASEAN this year.

At the same time, analysts continue urging the country to address structural issues that discourage foreign investment — among them high energy costs, expensive logistics, regulatory complexity, infrastructure gaps, and policy uncertainty.

These are not abstract economic concepts.

Foreign investors compare countries, not speeches.

Manufacturers compare electricity costs.

Exporters compare ports.

Entrepreneurs compare regulations.

Young professionals compare opportunities.

Capital flows where productivity can flourish.

The Debt Conversation We Need

Another issue received far less attention than it deserves.

Public debt.

A widely shared social media post pointed out that a large share of government revenues is now devoted to debt servicing, raising understandable concerns about the burden future generations may inherit.

Whatever one’s political persuasion, the underlying question deserves thoughtful discussion.

Borrowing itself is not the problem.

Every growing economy borrows.

The more important questions are:

• What are we borrowing for?
• Are today’s borrowings creating productive assets?
• Will these investments generate economic returns greater than their cost?
• Are future taxpayers receiving value for the obligations they will eventually inherit?

Debt used wisely can finance infrastructure, education, renewable energy, irrigation, ports, digital connectivity, and industries that generate growth for decades.

Debt used inefficiently merely postpones today’s problems while increasing tomorrow’s burden.

Citizens deserve transparency on both.

Beyond Ayuda

One phrase from the business community deserves repeating.

Beyond ayuda.

Not because assistance is unnecessary.

Many Filipino families genuinely need it.

But because the strongest social protection program has always been a growing economy.

A good job.

A competitive business.

Reliable electricity.

Efficient logistics.

Productive agriculture.

Modern manufacturing.

Thriving tourism.

Growing exports.

When businesses grow, workers earn.

When workers earn, families spend.

When families spend, local enterprises expand.

When enterprises expand, government collects more revenue without raising tax rates.

That is how prosperity becomes self-sustaining.

What Should We Watch Now?

Rather than replay yesterday’s speeches, perhaps we should watch a handful of indicators over the next twelve months:

• Are food prices becoming more affordable?
• Are electricity costs declining?
• Is logistics becoming more efficient?
• Are more domestic and foreign investments arriving?
• Are exports growing?
• Are quality jobs increasing?
• Is public debt being invested productively?
• Are MSMEs becoming more competitive?

These questions matter far more than applause lines.

The Conversation We Owe Ourselves

Perhaps the greatest value of every SONA is not agreement.

It is accountability.

Not blind criticism.

Not blind praise.

Simply asking whether promises are translating into better lives.

As citizens, we should expect more than annual announcements.

We should expect measurable progress.

The question after every SONA is not simply whether government should spend more, tax less, borrow more, or provide additional assistance.

The real question is whether every policy — whether it involves taxes, public debt, infrastructure, investment, education, energy, or social protection — moves the Philippines toward an economy that creates more jobs, lowers the cost of living, attracts investment, and gives every Filipino family a genuine opportunity to prosper.

Because families do not live inside speeches.

They live inside budgets.

Inside grocery receipts.

Inside utility bills.

Inside paychecks.

Inside business decisions.

Inside opportunities.

Inside the hopes they carry for their children.

That is where the true State of the Nation is measured.

And that is the question we should continue asking every Wednesday:

After the SONA, what now?

(MindaViews is the opinion section of MindaNews. Marriz B. Agbon is a Mindanawon now based in Taguig City, a chamber executive and development professional who previously led agribusiness promotion initiatives in government, working with private sector groups and chambers of commerce to strengthen regional economies. A graduate of the SBEP program of the University of Asia and the Pacific, he has spent much of his career at the intersection of busines, policy, and enterprise development. In recent years, he has turned increasingly to writing — reflecting on aging, endurance sports, family history, and the quiet lessons of everyday life. He writes another column for MindaNews — “South of the 8th Parallel” — every Sunday.)