Navotas City Rep. Tobias “Toby” Tiangco has filed House Bill No. 10451, a measure that seeks to increase the annual income tax exemption threshold from ₱250,000 to ₱350,000 while correspondingly adjusting the income tax structure to maintain the progressive nature of the country’s income tax system and ensure that taxpayers across different income levels benefit from the proposed reform.
The proposal comes in response to President Ferdinand R. Marcos Jr.’s recent State of the Nation Address, where he called on Congress to study further tax relief measures for Filipino workers amid rising living costs.
The proposal comes in response to President Ferdinand R. Marcos Jr.’s recent State of the Nation Address, where he called on Congress to study further tax relief measures for Filipino workers amid rising living costs.
“Sa panukalang batas, hindi na magbabayad ng income tax ang mga may annual taxable income na ₱350,000 pababa. Makikinabang din ang mga kumikita nang higit dito dahilmaaari silang makatipid ng hanggang ₱15,000 sa buwis bawattaon. Katumbas ito ng dagdag na ₱1,250 sa kanilang buwanangkita na maaari nilang gamitin sa pagkain, pamasahe, kuryente, gamot, at iba pang pang-araw-araw na pangangailangan,” Tiangco said.
“Habang tumataas ang presyo ng pagkain, kuryente, pamasaheat iba pang pangunahing pangangailangan, dapat ding sumabay ang ating tax system sa realidad ng buhay ng mgaPilipino. Hindi lang tax exemption ang layunin ng batas na ito. Inaayos din natin ang tax schedule para maging mas patas salahat ng manggagawa, lalo na sa middle class na madalasnaiipit—hindi sapat ang kita, hindi kwalipikado sa ayuda, perolubos na apektado ng pagtaas ng presyo ng mga bilihin,” he added.
Tiangco said the current ₱250,000 tax-free threshold has remained unchanged since the TRAIN Law took effect in 2018, despite years of inflation that have significantly eroded the purchasing power of Filipino families. His bill cites Philippine Statistics Authority data showing that inflation has substantially increased the cost of food, housing, electricity, transportation and other daily necessities, making an adjustment both timely and necessary.
The Navotas lawmaker emphasized that allowing workers to keep more of what they earn will not only provide immediate relief to households but will also benefit the broader economy.
“Kapag mas malaki ang naiuuwi ng mga manggagawa, mas may kakayahan silang gumastos. Nakakatulong ito sa mgalokal na negosyo at nagpapalakas sa ekonomiya. Ito ang tax reform na direktang pakikinabangan ng ordinaryong Pilipino,” Tiangco said.
He added that the measure is especially intended to provide relief to the country’s working middle class, whose disposable income has been steadily squeezed by inflation.
“Our objective is simple: give hardworking Filipinos a fairer tax system that reflects today’s economic realities. This is one concrete way we can help families cope with rising costs while stimulating economic activity from the ground up,” explained Tiangco.
House Bill No. 10451 amends Section 24 of the National Internal Revenue Code by raising the tax-exempt threshold to ₱350,000 and revising the succeeding tax brackets accordingly to maintain the progressivity of the income tax system.
