Bill Filed to Raise Tax-Free Income Threshold to P600,000 in Philippines

MANILA, Philippines — Senator JV Ejercito has filed a bill seeking to exempt workers earning up to P50,000 a month, or P600,000 annually, from paying income tax. In a statement on Wednesday, Ejercito explained he filed Senate Bill No. 2341 to amend the National Internal Revenue Code and exempt employees earning P600,000 or less annually. Ejercito said the bill aims to increase the disposable income of Filipino workers, which he believes will help stimulate the economy. He noted that many Filipinos are struggling with the rising cost of living, and reducing their tax burden would provide much-needed relief. "This bill is a step towards ensuring that our workers can keep more of their hard-earned money, allowing them to better provide for their families and contribute more to our economy," Ejercito said. The proposed measure, if passed, would mean that individuals earning P600,000 or less per year would no longer be subject to income tax. However, the bill's passage could also lead to a decrease in government revenue, which may affect the funding for public services and infrastructure projects. The economic impact of the bill will likely be closely scrutinized by policymakers and economists. Previous tax reforms in the Philippines have also aimed to provide relief to taxpayers and boost economic activity. The Tax Reform for Acceleration and Inclusion (TRAIN) Law, for instance, adjusted income tax brackets and introduced new taxes. The current proposal represents a potential further adjustment to the tax system.