Senator Francis “Kiko” Pangilinan has filed a measure seeking to increase the income tax exemption threshold to allow millions of Filipino workers to take home more of what they earn, providing immediate relief amid the rising cost of living.
Senate Bill No. 2344, filed on July 28, seeks to amend Section 24 of the National Internal Revenue Code of 1997 to boost the purchasing power of ordinary Filipino households by increasing the base exemption for personal income tax from the current P250,000 to P350,000.
The proposed measure aims to adjust the country’s income tax exemption to better reflect present-day economic realities, ensuring that ordinary workers keep a larger portion of their salaries to help cover essential household expenses such as food, transportation, education, healthcare, and utilities.
Pangilinan said that while inflation has steadily eroded the purchasing power of Filipino families, wage earners continue to shoulder increasing financial burdens despite stagnant incomes.
“Hindi pa nakakauwi ang mga Pilipino sa mga bahay nila, ubos na ang kinita nila sa araw na yun dahil sa tax. Ang P1,000, sabi nga nila, kapag nabaryahan, aba parang hinipan lang ng hangin. Wala na agad,” the senator said.
“Luho ba matatawag ang pataasin natin ang take-home pay ng mga tao? Pataasin lang natin nang konti ang take-home pay nila para naman may pambili ng hapunan o pambili ng maintenance ng high blood at talaga namang nakaka-high-blood na ang mga nangyayari dito sa atin,” he added.
The lawmaker’s proposal, which aligns with President Ferdinand “Bongbong” Marcos Jr.’s call to increase personal income tax exemptions during his State of the Nation Address (SONA) earlier this week, seeks to exempt the first P350,000 of annual taxable income from personal income tax.
This will also apply to self-employed individuals and professionals opting for the 8% gross-receipts tax regime.
If passed, the measure will adjust the income thresholds for the 15%, 20%, 25%, and 30% tax brackets to P500,000, P1 million, P2.5 million, and P8 million, respectively.
“Nakasakay sa pagganda o pagpangit ng ekonomiya ang pagbabago ng laki o liit ng kita ng mga negosyo. Pero yung mga buwis sa manggagawa, nakapako. May krisis o wala, matik ang kaltas. Kailangan ng konting tulong ng ating mga taxpayer lalo na’t mahirap ang buhay,” Pangilinan said.