Ejercito proposes bill raising tax exemption threshold to ₱600,000

MANILA, Philippines — Senator JV Ejercito has proposed a tax exemption for Filipino workers earning up to P50,000 a month, or P600,000 per year.

In a Wednesday statement, the senator noted that his proposed measure, Senate Bill No. 2341, seeks to amend the National Internal Revenue Code by increasing the tax exemption threshold from P250,000 to P600,000 annually.

“This is not just a tax reform measure. It is for our middle-income earners who work hard, pay their taxes, and continue to contribute to the economy despite the high cost of living. They are the true backbone of our economy,” said Ejercito in the bill explanatory note, which he filed on July 26.

“Our tax system must remain responsive to the changing economic realities faced by every Filipino family,” he added.

Citing a Philippine Statistics Authority’s 2024 Labor Force Survey, Ejercito then noted that an estimated 17.6 million full-time wage and salary workers in the private sector earn less than P600,000 annually and could benefit from the proposed measure.

Hence, pushing the amendment would ease the burden on hardworking Filipino workers and increase their take-home pay.

“This measure primarily aims to reduce the tax burden of Filipino middle-class workers, safeguard their take-home pay, and strengthen their purchasing power,” he said.

The bill also echoes President Ferdinand Marcos Jr.’s call during his penultimate state of the nation address on Monday, July 27, to expand the coverage of income tax exemptions and ease the burden on Filipino workers amid the rising cost of living. /das

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