Senator Bam Aquino is renewing his call to increase the personal income tax exemption to help Filipino workers and families cope with rising inflation and the continued depreciation of the Philippine peso. His proposal seeks to strengthen Filipinos’ purchasing power by allowing workers to keep more of their hard-earned income as the prices of basic goods and services continue to increase.
Aquino reiterated his call for the passage of Senate Bill No. 267 following the surge in the inflation rate to 7.8 percent in October and the continued weakening of the Philippine peso, which closed at ₱63.535 against the US dollar on Wednesday.
The proposed measure seeks to increase the annual personal income tax exemption cap to ₱480,000, providing greater financial relief to Filipino workers and families amid rising living costs.
The senator explained that the proposed exemption is equivalent to an ideal monthly living wage of ₱40,000 for a family of four or five.
“Ramdam ng mga pamilya na mas kaunti na ang naiuuwing pagkain sa kaparehong budget. Kailangang makasabay ang kanilang kinikita sa pagtaas ng presyo ng bilihin,” said Aquino, chairperson of the Committee on Trade, Commerce, and Entrepreneurship.
“Dapat mas malaki ang matira sa kanilang suweldo para may sapat silang pambili ng pagkain, bigas at iba pang pangunahing pangangailangan,” he added.
If enacted into law, the proposed increase in the personal income tax exemption could allow Filipino workers to retain a larger portion of their salaries and use the additional income to meet their families’ essential needs. These include food, education, and healthcare, particularly as the weakening peso and rising prices of goods and petroleum products continue to affect household purchasing power.
Higher Take-Home Pay to Support Filipino Families and Local Businesses
Aquino emphasized that increasing workers’ take-home pay could provide financial relief to households while helping support local businesses and strengthen economic activity.
According to the senator, giving Filipinos more disposable income would improve their ability to purchase essential goods and services. Increased household spending could also benefit businesses operating in local communities, including public markets, retail stores, and other establishments.
“Kapag mas malaki ang nauuwing kita ng mga Pilipino, mas may kakayahan silang bumili ng kanilang mga pangangailangan. Ang perang ginagastos nila sa palengke, tindahan, at iba pang negosyo ay tumutulong ding suportahan ang kabuhayan at trabaho sa ating mga komunidad. Kailangan natin ang ganitong dagdag na sigla sa ekonomiya ngayon,” he said.
The proposed income tax exemption increase is part of Aquino’s broader efforts to ease the financial burden on Filipino consumers. The senator is also pushing several legislative measures intended to address the rising costs of goods and services, petroleum products, and electricity.
Other Proposed Measures to Reduce Taxes on Goods and Electricity
Aside from increasing the personal income tax exemption cap through Senate Bill No. 267, Aquino has filed additional proposals aimed at reducing expenses for Filipino households.
Senate Bill No. 2047 seeks to lower the value-added tax (VAT) rate from 12 percent to 10 percent on goods and services, including petroleum products. The proposed reduction aims to help bring down prices and provide consumers with relief from increasing costs.
Aquino also filed Senate Bill No. 266, which seeks to exempt the sale of electricity from value-added tax (VAT). The measure aims to help reduce electricity bills and ease the financial burden on consumers.
Through these legislative proposals, Aquino is pushing for tax relief measures that could help Filipino workers and families manage the increasing cost of living. His proposed increase in the personal income tax exemption focuses on allowing employees to retain more of their earnings, while the proposed VAT reductions and electricity tax exemption seek to address other household expenses.
