Progress Tax Bill to Benefit Over 4.2 Million Workers in Philippines

The Philippines' Congress is moving forward with a "Progress Tax Bill" that proposes to raise the tax-free annual income threshold from the current P250,000 to P350,000. This legislative move is expected to benefit over 4.2 million workers upon its enactment. According to Marikina 2nd District Representative Miro Quimbo, chairperson of the House ways and means committee, the proposed legislation will offer relief to a significant portion of the workforce. He estimates that approximately 1.3 million workers will regain their tax-exempt status, while another 1.2 million will become newly exempt. Additionally, new entrants to the labor force, based on recent surveys, would also be exempt from paying income tax under the revised threshold. Quimbo highlighted that the bill addresses the concerns of the country's "missing middle" – lower- and middle-income workers who are vital to the economy. He described them as individuals who diligently pay taxes but often fall through the cracks of policy and government assistance programs. Navotas Representative Tobias Tiangco echoed these sentiments, stating that the tax reform measure could potentially increase workers' take-home pay by as much as P1,250 per month. This additional income could be allocated towards essential needs such as food, transportation, electricity, and medicine. The proponents of the bill emphasize its objective: to establish a fairer tax system that aligns with current economic realities for hardworking Filipinos. They view this as a tangible method to support families in coping with rising costs while simultaneously stimulating economic activity from the grassroots level. This tax reform initiative is part of President Ferdinand Marcos Jr.'s agenda, who has called for the urgent passage of such measures to alleviate financial burdens on citizens and foster economic growth. Source: GMA Money Philippines