President Ferdinand “Bongbong” Marcos Jr. asked Congress to raise the annual income tax exemption threshold from P250,000 to P350,000, citing better financial relief for middle-class workers.
In his fifth State of the Nation Address (SONA) on Monday, Marcos said the plan would help more Filipino employees to take home higher pay from wages and help ease the continuous effects of tensions in the Middle East and the fuel price hike.
“Dagdagan natin ang mga manggagawang malilibre sa buwis sa kanilang kita. Isasama na natin ang mga kumikita nang hindi lalagpas sa P350,000 kada taon,” Marcos said in his speech.
“Alam natin na sila rin ay nabibigatan sa epekto ng krisis… So, to ensure the continued progress of the middle class amidst the lingering effects of the crisis, we will pursue tax relief measures that promote growth, generate revenue, and advance equity toward socio-economic sustainability,” Marcos said.
Marcos also proposed exempting small businesses from the minimum corporate income tax. Under the Corporate Recovery and Tax Incentives for Enterprises Act, the MCIT is set at 2 percent of a corporation’s gross income over a 12-month period.
