To help middle-class Filipinos manage the growing cost of living, Senate Deputy Majority Leader JV Ejercito has introduced a bill seeking to exempt individuals earning up to ₱50,000 monthly from paying income tax.
Under Senate Bill No. 2341, the annual tax-exempt threshold would rise from ₱250,000 to ₱600,000. This shift effectively removes income tax obligations for workers earning up to ₱600,000 annually while establishing a revised graduated tax system for higher earners.
In a statement, Ejercito emphasized the need to support working-class citizens amid economic pressures:
“This is not simply tax reform. This is for our middle-income earners who work hard, pay taxes, and contribute to the economy despite the high prices of goods. They are the true backbone of our economy.”
Ejercito noted that the tax relief provided by the 2018 Tax Reform for Acceleration and Inclusion (TRAIN) Law is no longer sufficient due to ongoing inflation, elevated fuel rates, and the eroding purchasing power of everyday wages.
“Our primary objective in proposing this measure is not to offer temporary relief, but to provide Filipino families with decent take-home pay from their hard-earned income.”
“This measure seeks to acknowledge the value of middle-income earners and address their current vulnerable position.”