Akbayan, Dinagat solons seek P500K income tax exemption threshold

Akbayan Party-list lawmakers and a Dinagat Islands representative have filed a bill seeking to raise the annual income tax exemption threshold to P500,000, exceeding President Ferdinand Marcos Jr.'s proposal to increase the ceiling to P350,000.

"By adjusting the exemption to better reflect current economic realities, the proposed measure aims to preserve the purchasing power of Filipino workers, provide meaningful tax relief to low- and middle-income earners, and allow households to allocate a greater portion of their income toward essential goods, education, healthcare, housing, savings, and productive investments," according to House Bill No. 10440.

The bill was filed by Akbayan Reps. Chel Diokno, Percy Cendaña, and Dadah Kiram Ismula, and Dinagat Island Rep. Kaka Bag-ao.

Diokno said raising the exemption threshold would allow workers to take home more of their earnings to help meet their families' daily needs.

Cendaña hopes the president will certify the proposal as urgent so it will be approved before Christmas and implemented at the start of next year.

“Kung malawak naman ang suporta, sana hindi na ito paabutin pa ng susunod na taon. If the President can certify the measure urgent, then the House leadership will act on the bill ASAP. Kung papalarin, bago mag-Pasko pasado na ang batas at pagdating ng Enero ng sunod na taon, in effect na ang income tax exemption,” Cendaña said.

(If the measure enjoys broad support, I hope it won't have to wait until next year. If the President certifies it as urgent, the House leadership can act on the bill as soon as possible. If all goes well, the measure could be enacted before Christmas, and by January next year, the higher income tax exemption will already be in effect.)

Screenshot from HB 10440 (Photo from Akbayan)

According to the bill, "self-employed individuals and professionals shall have the option to avail of an eight percent (8%) tax on gross sales or gross receipts and other non-operating income in excess of [Twe] FIVE hundred [fifty] thousand pesos [(P250,000)] (PHP 500,000.00) in lieu of the graduated income tax rates under Subsection (A)(2)(a) of this Section and the percentage tax under Section 116 of this Code." —LDF, GMA News