Manila: Senator Bam Aquino is renewing his push to raise the annual income tax exemption threshold to PHP480,000 as Congress is about to resume regular session, saying the measure would immediately increase the take-home pay of millions of Filipino workers grappling with the rising cost of living.

According to Philippines News Agency, Aquino urged lawmakers to prioritize Senate Bill 267, which seeks to amend the National Internal Revenue Code by exempting individuals earning up to PHP480,000 annually from paying income tax. The bill, filed on July 8 last year, was among his first legislative proposals after returning to the Senate.

Aquino highlighted the urgency of the measure, stating that the bill has remained idle for almost a year. He expressed hope that when Congress resumes session, the bill will be included among the priority measures to provide immediate relief to Filipinos and increase their take-home pay. He noted that the current PHP250,000 income tax exemption under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, has become outdated as inflation continues to erode workers' purchasing power.

The senator emphasized that raising the exemption threshold would allow employees to retain more of their earnings for essential expenses, such as food, education, and healthcare, while also boosting consumer spending. He stressed that enacting this measure is timely amid relentless increases in the prices of goods and services, which have diminished workers' purchasing power.

In addition to Senate Bill 267, Aquino has also filed other measures aimed at reducing the financial burden on Filipino families. These include Senate Bill 266, which would exempt electricity sales by generation, transmission, and distribution companies, as well as electric cooperatives, from value-added tax (VAT), and Senate Bill 2047, which seeks to reduce the VAT rate on goods and services, including petroleum products, from 12 percent to 10 percent.