Sen. JV Ejercito has filed a bill seeking to exempt workers earning up to P50,000 a month, or P600,000 annually, from paying income tax.
In a statement on Wednesday, Ejercito explained he filed Senate Bill No. 2341 to amend the National Internal Revenue Code and exempt employees earning P600,000 or less annually from income tax, essentially raising the current tax-exempt threshold of P250,000.
‘This is not just a tax reform measure. It is for our middle-income earners who work hard, pay their taxes, and continue to contribute to the economy despite the high cost of living. They are the true backbone of our economy,’ said Ejercito in the bill explanatory note, which he filed on July 26.
‘Our tax system must remain responsive to the changing economic realities faced by every Filipino family,’ he added.
Citing a Philippine Statistics Authority’s 2024 Labor Force Survey, Ejercito then noted that an estimated 17.6 million full-time wage and salary workers in the private sector earn less than P600,000 annually and could benefit from the proposed measure.
Hence, pushing the amendment would ease the burden on hardworking Filipino workers and increase their take-home pay.
‘This measure primarily aims to reduce the tax burden of Filipino middle-class workers, safeguard their take-home pay, and strengthen their purchasing power,’ he said.
Furthermore, Ejercito also stressed that the proposal is not merely a temporary response to inflation but a long-term measure intended to help Filipino families.
‘Our primary objective in proposing this measure is not to offer temporary relief, but to provide Filipino families with decent take-home pay from their hard-earned income. This measure seeks to acknowledge the value of middle-income earners and address their current vulnerable position,’ the senator said.
The bill also echoes President Ferdinand Marcos Jr.’s call during his penultimate state of the nation address on Monday, July 27, to expand the coverage of income tax exemptions and ease the burden on Filipino workers amid the rising cost of living