House panel approves raising tax-free income threshold to ₱350,000

The House Committee on Ways and Means on Monday approved the measure increasing the annual tax-free income from ₱250,000 to ₱350,000.

The committee approved the motion to approve House Bill 10345 authored by Speaker Francisco “Bojie” Dy III of Isabela and House Majority Leader Sandro Marcos of Ilocos Norte put forward by House ways and means panel vice chairperson Atty. Jennifer Lagabas of Misamis Oriental.

“We want the consumer to be paying as less tax as possible. The consumer is better protected under this system,” committee chairman Miro Quimbo of Marikina City said.

Finance Undersecretary Karlo Adriano said during the same hearing that the bill’s beneficiaries will increase the number of compensation workers who are income tax exempt from 5.1 million to 6.35 million.

The 6.35 million, Adriano said, is 77% of the 8.2 million compensation workers.

House Assistant Minority Leader Sarah Elago, for her part, said the bill should further increase the tax-free annual income threshold because the proposal only adjusted based on inflation or so that the compensation workers’ income will be at the same value as it was in 2018.

“Food, oil and electricity prices remain so high. If we are talking about living wage, the threshold should be at P500,000,” Elago said.

“We are just bringing back their 2018 purchasing power without additional help amid the worsening crisis,” Elago added. –NB, GMA News