4.2M workers to benefit from Progress Tax bill — Quimbo

At least 4.2 million workers are expected to benefit from the administration-backed Progress Tax bill, which seeks to raise the tax-free annual income threshold to P350,000 from the current P250,000, House ways and means committee chairperson and Marikina 2nd Dist. Rep. Miro Quimbo said.

Quimbo made the statement as Navotas Rep. Tobias Tiangco filed House Bill No. 10451, which also proposes increasing the tax-free annual income threshold to P350,000.

The measure mirrors House Bill No. 10453, filed by Speaker Faustino "Bojie" Dy III of Isabela and House Majority Leader Sandro Marcos of Ilocos Norte, following President Ferdinand Marcos Jr.'s call for the urgent passage of the tax reform measure.

"An estimated 4.2 million workers would benefit from the proposal, with 1.3 million regaining tax-exempt status, another 1.2 million becoming newly exempt, and the remainder consisting of new entrants to the labor force who would likewise be exempt from paying income tax based on our latest Labor Force Survey," Quimbo said during the Department of Finance's briefing on the proposed Progress Tax bill.

"The President's policy directive during his SONA resonates because it finally addresses the concerns of the country's 'missing middle.' These are lower- and middle-income workers—the backbone of our economy—who faithfully pay taxes every payday but fall through the cracks: unseen by our policies and ineligible for government assistance," he added.

Tiangco agreed, saying the proposed tax reform measure could increase workers' take-home pay by as much as P1,250 a month.

"They could spend it on food, transportation, electricity, medicine, and other basic needs," Tiangco said.

"Our objective is simple: give hardworking Filipinos a fairer tax system that reflects today's economic realities. This is one concrete way we can help families cope with rising costs while stimulating economic activity from the ground up," he added. — MCG, GMA News