A New Dawn for Income Tax Exemption?
In a pivotal moment for the Filipino public, President Ferdinand “Bongbong” Marcos Jr. has taken a bold step, calling on Congress to raise the personal income tax exemption ceiling from its current level of P250,000. But that’s just the beginning—Bicol Saro Party-list Representative Terry Ridon has other ideas.
During a recent press conference, Ridon passionately advocated for a higher ceiling, suggesting it should be increased to P500,000. “If we can make this happen, it would be a game changer for so many families,” he said. His eyes lit up as he talked about the potential benefits, emphasizing how important it is that more Filipinos can enjoy tax exemptions.
“Right now, only those earning around P30,000 a month can benefit from the current ceiling,” Ridon explained. “But many of our fellow Filipinos deserve more—a fair chance to thrive.” He stressed that as an upper-middle-income economy, it’s crucial for the government to offer tangible benefits to its citizens.
“How many more people can we help if we raise that ceiling to P500,000 or even P450,000? That’s what I’m hoping to uncover in our upcoming debates,” he urged, looking around the room in anticipation.
The Journey Ahead
Chairing the House Ways and Means Committee, Marikina Representative Miro Quimbo made it clear that the current target guiding their discussions is P350,000. This figure aligns with a proposed bill from House Speaker Faustino Dy III and House Majority Leader Sandro Marcos.
“We’re still navigating through the hearings, but right now, P350,000 is our guideline,” he explained thoughtfully. “Let me clarify, this isn’t just about gross income—after accounting for deductions like SSS, GSIS, PhilHealth, and Pag-Ibig, if an individual earns P350,000 after those deductions, they qualify for tax exemption.”
Quimbo added, “In terms of impact, raising this ceiling could mean one million workers no longer being burdened by taxes. This is huge!” His tone resonated with emotion as he spoke about the potential for real change in people’s lives.
A Fairer System for All
What about those earning more than P350,000? Quimbo affirmed that there would be adjustments, focused on ensuring a fair and progressive tax system. “The more you earn, the higher the tax burden—but we won’t alter the highest tax rate. Equity is key.”
The commitment to finding a balance didn’t go unnoticed, as Quimbo also noted, “Raising the income tax exemption ceiling is not just feasible; it’s essential. The Bureau of Customs is on track to meet revenue targets, meaning we can explore new avenues to recover any lost tax income.”
Quimbo emphasized that allowing people to keep more of their earnings could stimulate economic activity. “Every peso returned to individuals means more money circulating in the market, generating new tax opportunities in the long run. It’s a win-win!”
Moreover, he discussed future sources of revenue. This includes considerations around excise and value-added taxes on vape products, which he ardently believes require appropriate taxation. “Vape products are damaging, particularly to our youth. We must impose fair taxes to address the health impacts.”
Looking Ahead
As discussions progress, Quimbo is adamant about maintaining transparency and fairness in any changes made. “We can raise the exemption without compromising our commitment to fairness. This isn’t just about cutting taxes; it’s about creating a supportive environment for all Filipinos.”
And so, the journey begins. With initial deliberations set to start soon, the fate of income tax exemptions hangs in the balance. Will Congress heed the call for change and embrace a vision that puts the people first? Only time will tell, but the dialogue has certainly sparked hope across the nation.
