Sotto files bill to raise tax-free annual pay threshold to P350,000

MANILA, Philippines — Senate President Pro Tempore Vicente Sotto III on Tuesday filed a bill seeking to raise the threshold for annual income tax exemption to P350,000, in accordance with the recommendations made by President Ferdinand Marcos Jr. in his State of the Nation Address (SONA) on Monday. Under Senate Bill (SB) No. 2338, or the proposed "Income Tax Exemption Act," individuals earning an annual gross taxable income of P350,000 and below would be exempted from paying income tax. Currently, the tax exemption threshold stands at P250,000 annually. The bill aims to ease the tax burden on low and middle-income earners, thereby increasing their disposable income and stimulating domestic consumption. President Marcos Jr. had previously expressed his support for adjusting the income tax system to enhance the purchasing power of Filipinos and boost the economy. This legislative move is seen as a step towards realizing that objective, potentially leading to increased consumer spending and economic activity within the Philippines.