Manila: The House of Representatives Committee on Ways and Means on Tuesday welcomed President Ferdinand R. Marcos Jr.'s call for sweeping tax reforms aimed at easing the burden on Filipino families and businesses, with panel head Marikina 2nd District Rep. Miro Quimbo committing to advancing the Chief Executive's legislative priorities immediately.
According to Philippines News Agency, Quimbo said Marcos' directive affirms the committee's long-standing position that the country's tax system must evolve to keep pace with rising living costs while encouraging economic growth and voluntary tax compliance. "We welcome the President's clear directive to pursue meaningful tax reforms that will provide immediate relief to Filipino taxpayers while strengthening our economy. The Committee on Ways and Means stands ready to act on these priority measures without delay," Quimbo said in a news release.
Foremost among the President's tax priorities is expanding the personal income tax exemption threshold to cover annual incomes of up to PHP350,000, which would provide long-overdue relief to millions of salaried workers, particularly middle-income earners. "The effects of inflation over the past years have significantly reduced the purchasing power of Filipino workers. Adjusting the income tax exemption threshold recognizes these realities and ensures that hardworking taxpayers are not unfairly penalized simply because prices have increased," Quimbo said.
He noted that the proposal is consistent with the committee's ongoing work to recalibrate the country's personal income tax system and address the phenomenon of 'bracket creep,' where workers paying higher taxes are not necessarily enjoying higher real incomes. Beyond personal income tax reform, Quimbo also expressed strong support for the President's proposal to exempt micro and small enterprises from the Minimum Corporate Income Tax (MCIT), saying the measure would allow smaller businesses to reinvest more of their earnings into expansion, job creation, and higher productivity.
"Our micro and small enterprises are among the biggest generators of employment in the country. Reducing unnecessary tax burdens on them allows these businesses to grow, compete, and create more opportunities for Filipino workers," he said. The committee, likewise, welcomed Marcos' proposal for a comprehensive tax amnesty covering income tax, estate tax, donor's tax, value-added tax (VAT), and corresponding surcharges, interests, and penalties.
Quimbo emphasized that the House Committee on Ways and Means would work closely with the Department of Finance, the Bureau of Internal Revenue, the business community, tax practitioners, and other stakeholders to ensure that the President's tax agenda is implemented accordingly. "We fully support the President's vision of a tax system that is fair, responsive, and growth-oriented. These reforms are not simply about reducing taxes. They are about modernizing our tax system so it better reflects today's economic realities, rewards compliance, encourages investment, and ultimately improves the lives of Filipino families," he said.
