Gov’t Eyes Income Tax Relief for Middle Class

President Marcos has urged lawmakers to recalibrate the country’s income tax system, pushing for an increase in the minimum annual income subject to tax to P350,000, from the current P250,000. In his fifth State of the Nation Address on Monday, the President called on Congress to pass tax reform legislation that he believes could benefit millions of Filipinos. The proposed adjustment aims to provide economic relief to the middle class, who have been facing rising prices and increased cost of living. This move is seen as a measure to address the economic challenges confronting many Filipino households. With inflation rates remaining a concern in the Philippines over the past few years, the increase in the tax-exempt income threshold is expected to boost the disposable income of families, potentially stimulating domestic consumption and contributing to economic growth. If enacted, the tax reform is anticipated to increase the take-home pay for many Filipino workers, thereby improving their living standards. However, the potential impact on government revenue and the specific details of implementation will require further deliberation. The proposed tax relief is a significant policy initiative, likely to spark robust debate in Congress, as the middle class is a crucial demographic for the stability of any administration in the Philippines.