Ridon hopes income tax exemption ceiling raised higher than suggested P350,000

While President Ferdinand "Bongbong" Marcos Jr. has called on Congress to raise the personal income tax exemption ceiling to P350,000 from the current P250,000, at least one lawmaker hopes to raise it even higher.

Bicol Saro Party-list Representative Terry Ridon said Thursday that there are already House bills pegging the ceiling at P480,000, while he wants the ceiling increased to P500,000.

"Hanggat maari, maitaas pa po natin yung ceiling nito pong pagtatanggal ng income tax payments. Kung puwede hong at the very least P500,000 yun pong pinag-uusapan po nating ceiling po noong pwede pong makapag-benefit doon sa income tax exemption, mas maigi po. So as we go towards the debate doon po sa Ways and Means Committee, tingnan po natin kung ano yung pinakaakma na income bracket para po rito," Ridon said in a press conference today.

(If we can, we want to raise the ceiling for income tax payment exceptions to at the very least P500,000. So as we go towards the debate in the House Ways and Means committee, we will see which income bracket would be most fitting.)

"Kasi halimbawa, yun pong pinag-usapan po natin currently, I think around almost 30,000 lang po yun pong pinag-usapan po nating monthly income noon pong maapektuhan po nito. Pero ang totoo naman ho, higit pa ho roon yun pong mga kababayan po natin na mas magandang makapagbenepisyo po mula rito.," he said.

(For instance, the amount currently being discussed means only those with a monthly income of P30,000 will benefit. But the truth is, it would be good if many more of our fellow Filipinos benefit from it.)

"And to relate it to our current status of being an upper-middle income economy, yan ho dapat yun pong mga aktuwal na benipisyo noong atin pong mga kababayan. So we'd like to get the numbers in. So ibig sabihin, pagka ho malaking bilang din po yung makakapagbenepisyo doon sa furthering the ceiling to P500,000 or to P450,000, mas maganda po yon. But we'd like to get the numbers kung ilan po yung actual individuals ma makakabenepisyo po pag itinaas pa ho natin yung ceiling," he added.

(And to relate it to our current status of being an upper-middle income economy, that should be the actual benefits from that for Filipinos. So we'd like to get the numbers in. This means, if the number of people who can benefit from furthering the ceiling to P500,000 or P450,000 is big, that would be even better. But we'd like to get the numbers of how many individuals will benefit if we raise the ceiling.)

P350,000 after deductions

Marikina Representative Miro Quimbo, who chairs the House Ways and Means committee, said the figure that will guide them in his committee's deliberations on the issue is P350,000, which is also the amount mentioned in the proposed bill filed by House Speaker Faustino Dy III and House Majority Leader Representative Sandro Marcos.

"Well, titingnan natin kung ano ang lalabas sa mga hearings pero right now, yon ang indicative figure natin. At lilinawin ko, yung P350,000, hindi yun yung P350,000 lang talaga na gross kasi ang kino-compute na tax para masabing exempt ka, kino-compute yung P350,000, the amount of salary you receive less the deductions that you pay. Meaning, binabawas ang SSS, GSIS, ang PhilHealth, ang Pag-Ibig. At kapag P350,000 pa rin ang naiiwan, ikaw ay tax-exempt. So in short, kapag may gross salary ka na tingin ko maaabot ng P385,000 to P390,000, ikaw pa rin ay magiging tax-exempt dahil aalisin natin ang mga SSS at GSIS contributions," Quimbo explained.

(We have to see what comes out in the hearings but right now, P350,000 is the indicative figure we will use. And let me clarify, the P350,000 is not the gross, becaues the amount that is computed to see if you are exempt is the amount of salary you receive less the deductions that you pay. Meaning, the SSS, GSIS, and Pag-Ibig payments are already deducted. And if P350,000 remains, then you are tax-exempt.)

The legislator from the second district of Marikina City added that, "Even at P350,000 is isang milyong mga manggagawa ang makikinabang dyan na dating nagbabayad ng buwis na hindi na magbabayad ng buwis kapag tinaas natin yung tax exemption. So, as to the amount, indicative yung P350,000 pero hindi ko masasabing final na yon."

(Even at P350,000 that means one million workers who would no longer have to pay taxes if the tax exemption is raised. So the P350,000 is indicative, but I cannot say it will be the final amount.)

When asked how the issue would affect those earning more than P350,000 annually, Quimbo replied, "Magkakaroon din ng corresponding adjustments din doon. Right now, hindi pa natin nakikita yung final proposal. Pero definitely, ang magiging tax system is going to be progressive. Ibig sabihin, mas mayaman ka, mas malaki ang tax burden mo."

"Ibig lang sabihin is that whatever the current system is, sila magsho-shoulder ng highest tax rate. So hindi natin babaguhin yung highest tax rate," he added.

Exemption increase 'doable'

Quimbo also said raising the personal income tax exemption ceiling is doable as the Bureau of Customs reported to the House Committee on Ways and Means today that it is on track in meeting its collection target this year.

House Comm on Ways & Means Chair Miro Quimbo reports that the Bureau of Customs is on track in collecting its revenue target this year & that the president’s call to increase to P350,000 the ceiling for personal income tax exemption is doable. @gmanews @gmanewsbreaking pic.twitter.com/vfzHguvXXR

— Tina PanganibanPerez (@tinapperez) July 30, 2026

"On target sila sa first six months despite yung pagbaba ng economic activity dahil sa oil crisis. Bagamat nagkaroon ng slowdown ang ating ekonomiya, still inabot pa rin nila ang target nila," Quimbo stated.

He added that the personal income taxes lost from raising the exemption ceiling can be recovered through other means.

"Doable, doable kasi nakita naman ng pangulo yon na on its own, meron ding magge-generate na tax activities yon eh. Kasi sa bawat piso na binabalik mo sa tao imbes na ito'y kukulektahing buwis ay pondong puwede niyang gamitin sa merkado. Ibig sabihin, dati imbes na binabayad sa BIR, ngayon ay gagamitin niya ito para mamalengke. So merong economic activity na magiging taxable din naman. So on its own, meron siyang recovery system," Quimbo explained.

"I think ultimately, natitiyak ko ang DOF maghahabol diyan ng other tax measures to be able to recover. What those items are, we leave it to the Department of Finance to determine kung ano yung panggagalingan noon. May mga initial naman tayo nadidinig sa mga sinasabi nila but I guess until and unless they present it, doon lang natin malalaman. But we will always stand firm on our position that hindi po puwede na ibibigay natin sa kaliwang kamay yung pagpapaluwag ng taxes pero with the right hand, babawiin naman natin in the form of indirect taxes. Hindi naman tayo papayag doon," he emphasized.

One possible source of added revenues is excise and value added taxes on vape products.

"Kanina pinag-usapan lang kung meron may isang bagay was really on vape. Pinag-usapan yun sa value added tax but more importantly yung excise tax ng vape products. Yung vape products, yun ang pinakaimportante kasi right now, tingin natin ito yung pinakamabigat ang pinsala talaga sa ating mga mamamayan, lalo ang kabataan. Kinakailangan talaga natin ito na mapatawan ng mas karapatdapat na buwis kumpara sa danyos o damage na dinadala niya sa kalusugan ng ating kabataan," Quimbo explained.

Deliberations on the issue, Quimbo said, are scheduled to start on Tuesday, August 4. — BM, GMA News