The House Committee on Ways and Means has approved a measure raising the annual tax-free income threshold from P250,000 to P350,000, boosting the take home pay of low and middle income workers.
Principally authored by Speaker Faustino “Bodjie” Dy and Majority Leader Alexander Ferdinand Marcos, House Bill 10345 amends the National Internal Revenue Code by placing annual taxable income up to P350,000 under the 0% income tax bracket, following a proposal by President Ferdinand Marcos Jr. during his 5th State of the Nation Address.
The panel also approved House Bill 10346, which exempts microenterprises from the 2-percent Minimum Corporate Income Tax (MCIT) to cushion small businesses operating on thin margins.
Presided over by Chairman and Marikina Rep. Miro Quimbo, both bills were approved subject to style as part of a broader tax reform package.
“We want our tax system to keep pace with the realities faced by Filipino families and workers. If incomes have not kept up with the rising cost of living, then we have to make sure that taxation does not further erode their purchasing power,” Quimbo said.
Addressing MCIT relief for small businesses, Quimbo emphasized that the measure aims to foster economic growth, “the objective is not simply to reduce taxes. It is to create breathing room for entrepreneurs and businesses so they can spend, invest, hire, and grow.”
Quimbo noted that the committee may consolidate these tax relief measures with compensatory revenue proposals into a single omnibus package to safeguard fiscal sustainability.
“We are looking at the entire tax system as a whole. We want to deliver real relief to taxpayers, but we also have a responsibility to make sure that the government can continue to fund public services. That means balancing tax relief with responsible and sustainable revenue measures,” Quimbo said.