Sen. Paolo Benigno “Bam” Aquino is calling on his colleagues to support the immediate passage of a proposed measure which he filed last year that seeks to provide financial relief to Filipino families amid the weakening peso, looming impact of super El Nino, and other economic uncertainties.
Aquino said the continued weakening of the peso, the super El Nino phenomenon, high interest rates, and slow economic growth could further drive up the prices of food and other basic commodities, electricity, and petroleum products which would put more burden on Filipinos.
He said the passage of Senate Bill No. 267, which was filed in July last year, aims to raise the annual income tax exemption cap to P480,000, hence a greater number of Filipino workers and families would benefit from it.
The proposed exemption is equivalent to an ideal monthly living wage of P40,000 for a family of four or five.
Aquino said the proposed increase in income tax exemption cap would help ensure that Filipino workers can keep more of their hard-earned income to meet their families’ basic needs, such as food, education, and health care, especially now that the peso is weakening.
The measure seeks to update the current exemption level under RA 10963 or the Tax Reform Acceleration and Inclusion (TRAIN) Law, which has become outdated as inflation continues to erode workers’ purchasing power.
Aquino is also pushing for the passage of SB No. 2047 which aims to reduce the value-added tax rate from 12 percent to 10 percent on goods and services, including petroleum products, to help lower prices.
He also filed SB No. 266 which seeks to exempt the sale of electricity from VAT to help bring down consumers’ electricity bills.
To help mitigate the impact of super El Nino, Aquino urged government lending institutions to waive loan interest charges from January to March 2027.
He has called on the government to immediately suspend the collection of excise tax on all petroleum products and remove the 12 percent VAT on residential electricity.