House of Representatives Speaker Faustino ‘Bojie’ Dy III and Majority Leader Ferdinand Alexander Marcos have filed a bill that seeks to increase the ceiling for income tax exemptions, from the previous P250,000 annual salary to P350,000.
In a statement on Wednesday, Marcos said that they filed House Bill (HB) No. 10345 in response to the call of his father, President Ferdinand Marcos Jr., for greater relief for families and to strengthen their purchasing power.
The older Marcos, in his fifth State of the Nation Address (Sona), called on Congress to pursue a broader income tax exemption.
‘President Marcos’ Sona placed tax relief where families will feel it, in the pay they bring home after every cutoff, and Speaker Bojie Dy has made sure the House responds with a bill rather than applause alone,’ Majority Leader Marcos said.
‘Raising the tax-free ceiling to P350,000 gives workers more room for food, tuition, medicine and the bills that do not wait,’ he added.
HB No. 10345 seeks to amend Section 24 of the National Internal Revenue Code (NIRC), or the provisions regarding income taxes. The last time that the income tax exemption was adjusted was when Tax Reform for Acceleration and Inclusion (TRAIN) Law was enacted, exempting those with annual salaries of P250,000.
Those with annual income above P350,000 but not exceeding P400,000 will have a 15 percent tax rate, while the other rates for higher annual wages are retained.
‘The President’s SONA gave us a clear standard: tax policy must remain responsible while recognizing how much the cost of living has changed, and Speaker Bojie Dy shares that practical approach,’ Marcos said.
‘This measure updates the brackets for workers, professionals and small entrepreneurs so the tax code reflects present realities,’ he added.
Several lawmakers have lauded President Marcos’ move to support the increase of the income tax exemption coverage, but labor groups said that this would not be enough.
Kamanggagawa party-list Rep. Elijah San Fernando on Tuesday said the Chief Executive did not present anything significant for the labor sector’s welfare aside from the income tax exemption.
In a separate statement, the Trade Union Congress of the Philippines said that a higher range of income tax exemptions would not stop workers from airing grievances, especially since the proposed legislated wage hike was not discussed.
TUCP on Tuesday noted that while Marcos’ fifth Sona was his longest, there was no mention of pro-labor legislation being advocated by different sectors
Aside from the legislated wage hike, TUCP said they were waiting whether Marcos will bring up proposals to abolish regional wage boards. However, what the President mentioned, TUCP noted, was a broader income tax exemption that minimum wage earners would not benefit from.