Senator Mark Villar has filed Senate Bill No. 2137 seeking to increase the annual income tax exemption ceiling from ₱250,000 to ₱360,000, saying the measure will provide much-needed relief to Filipino workers and families struggling with the rising cost of living.
The Bangko Sentral ng Pilipinas (BSP) has projected inflation to reach 3.6 percent this year, exceeding the government’s 3.0 percent target. Meanwhile, recent data from the Philippine Statistics Authority (PSA) showed continued increases in the prices of food, fuel, electricity, transportation, and other basic commodities, further reducing the purchasing power of Filipino households.
“The current income tax exemption threshold no longer reflects the financial realities faced by ordinary workers.”
According to Villar, the current income tax exemption threshold no longer reflects the financial realities faced by ordinary workers, many of whom continue to struggle with rising household expenses despite working hard to support their families.
Under the proposed bill, individuals earning up to ₱360,000 annually will be exempted from paying income tax, allowing low- and middle-income earners to bring home a larger portion of their salaries for essential expenses such as food, transportation, utilities, education, and healthcare.
The measure also seeks to adjust the graduated income tax brackets to better reflect current economic conditions and inflation trends.
“Habang patuloy na tumataas ang presyo ng mga pangunahing bilihin at serbisyo, dapat lamang na mabigyan ng dagdag na ginhawa ang ating mga manggagawa. Sa pamamagitan ng panukalang ito, mas malaking bahagi ng kanilang kinikita ang maiuuwi nila para sa pang-araw-araw na pangangailangan ng kanilang pamilya,” the veteran legislator said.
The seasoned lawmaker added that the proposed measure is not only intended to ease the tax burden on workers but also to help strengthen household spending and improve overall economic activity by increasing consumers’ purchasing power.
“Layunin nating magkaroon ng mas patas at mas makataong sistema ng pagbubuwis.”
“Layunin nating magkaroon ng mas patas at mas makataong sistema ng pagbubuwis—bilang pagkilala na din sa hirap at sakripisyo ng ating mga manggagawa, ay susuportahan natin sila sa at isa sa mga hakbang ay pagbibigay ng tax relief,” the senator added.
As Chairperson of the Senate Committee on Finance, he also reaffirmed his commitment to advancing practical and responsive economic measures that promote responsible fiscal management, protect taxpayers’ welfare, and support inclusive economic growth.
