Erwin Tulfo's tax holiday proposal must be studied, says Marcos economic aide

The one-month tax holiday proposal of Senator Erwin Tulfo must be thoroughly studied, according to Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Frederick Go on Thursday.

"Bagong-bago po ito. Kailangang pag-aralan ito nang mabuti ng Department of Finance at ng DBM po (This is new. This must be studied by the Department of Finance and the Department of Budget and Management). This is quite a big matter, 'no, and I think it's best to give the DOF and the DBM time to carefully study this proposal," Go said in a Palace press briefing. 

Tulfo filed Senate Bill 1446, also known as 'One-Month Tax Holiday of 2025,' as he acknowledged the need for a "far, extraordinary, and immediate form of relief" among taxpayers, particularly the working population.

This proposal was made amid issues of corruption in infrastructure projects, involving government officials. 

Under the proposed measure, the one-time, one-month income tax holiday will be applicable to individual taxpayers receiving compensation income, which will be on the first payroll month immediately following the approval of the bill.

"The exposure of alleged anomalies on flood control projects, involving billions of pesos in public funds have gravely eroded public trust in government fiscal stewardship. The Filipino people have raised a clear and resounding clamor— Ibalik ang pera ng bayan. Ibaba ang tax (Return the nation's money. Lower taxes)," Tulfo said in a press release.

"The welfare of the people is the supreme law. It is therefore just and necessary that the State respond by providing tangible relief to the very taxpayers who sustain it," he added.

Meanwhile, the proposed tax holiday will not cover the mandatory contributions to the Government Service Insurance System (GSIS), Social Security System (SSS), PhilHealth, Home Development Mutual Fund (HDMF or Pag-IBIG), and loan amortizations and other payments voluntarily authorized by the employee.

It will also include a non-diminution clause, which will ensure that employers could not reduce employee wages during the tax holiday month. — VDV, GMA Integrated News