Senator Bam Aquino renewed his push for higher income tax exemptions and complementary tax reform measures designed to support Filipino families facing economic pressures from a weakening peso and the looming threat of a Super El Niño.
Under Senate Bill No. 267, the annual personal income tax exemption cap would be raised to ₱480,000. Aquino, who serves as the chairperson of the Senate Committee on Trade, Commerce and Entrepreneurship, explained that the proposed threshold reflects an ideal monthly living wage of ₱40,000 for a family of four or five.
He noted that the measure aims to cushion workers against the rising costs of basic goods, education, and healthcare.
“Families feel that they are bringing home less food despite having the same budget. Their earnings must keep pace with the rising prices of goods,” Aquino said.
“A larger portion of their wages should remain, so that they have enough to buy food, rice, and other basic necessities,” he added.
The Department of Finance (DOF) previously stated its openness to the proposal, indicating support for an increased tax exemption cap provided that equivalent revenue sources are identified to offset the fiscal impact. The measure seeks to update current exemption levels under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which have been eroded by persistent inflation.
In addition to the income tax adjustments, Aquino advocated for Senate Bill No. 2047, which proposes lowering the Value-Added Tax (VAT) rate from 12% to 10% on general goods and services, including electricity and petroleum products. He also pushed for Senate Bill No. 266, which aims to exempt electricity sales entirely from VAT to help reduce household utility bills.
Aquino emphasized that expanding workers’ take-home pay would stimulate local economic activity by empowering consumers to spend more within their communities.
“When Filipinos take home higher earnings, they have a greater capacity to purchase the things they need. The money they spend in markets, shops, and other businesses also helps support livelihoods and jobs within our communities. We need this kind of boost to the economy right now,” he stated.