Rep. Marcy Teodoro files bill increasing income tax exemption ceiling to P500,000

Marikina City 1st District Representative Marcy Teodoro has filed a bill to increase the personal income tax exemption ceiling to P500,000, more than President Ferdinand "Bongbong" Marcos Jr's proposal in his State of the Nation Address (SONA).

The Middle-Class Tax Relief and Inflation Protection bill Teodoro filed also proposes to adjust individual income tax brackets.

Teodoro also proposed the automatic adjustment of the tax-exempt threshold and income tax brackets every three years.

In his SONA last July 27, Marcos called on Congress to expand the annual income tax exemption threshold in a bid to increase the Filipino middle class take-home pay and ease their burden amid rising cost of living brought about by the lingering effects of the Middle East fuel crisis.

The President urged lawmakers to expand the exemption threshold for annual income tax to those earning P350,000.

House Speaker Faustino “Bojie” Dy III of Isabela and Majority Leader Sandro Marcos of Ilocos Norte on July 29 filed a bill increasing the tax-free annual income ceiling to P350,000 from the current P250,000.

Bicol Saro Party-list Representative Terry Ridon said last July 30 that there are already House bills pegging the ceiling at P480,000, while he wants the ceiling increased to P500,000.

Akbayan Representatives Chel Diokno, Percy Cendaña, and Dadah Kiram Ismula, and Dinagat Island Representative Kaka Bag-ao.have also filed a bill seeking to raise the annual income tax exemption threshold to P500,000.

Dy assured the public that the House of Representatives is ready to act on the legislative priorities of Marcos Jr. that he outlined during his fifth SONA.

Included in the President’s legislative wish list were bills that would expand the income tax exemption to cover more workers earning up to P350,000 annually; reduce income taxes for other workers; exempt small businesses from the minimum corporate income tax; and grant tax amnesty for unpaid income tax, estate tax, donor’s tax, value-added tax (VAT), and the corresponding penalties. —KG, GMA News