Weeks after Marcos SONA, House panel OKs higher income tax exemption ceiling

CHRISTMAS SEASON. Filipino shoppers flock to the Divisoria Market to buy gifts for their loved ones on December 14, 2025. Rappler A bill exempting individuals earning up to P350,000 annually from paying income tax hurdles a House committee MANILA, Philippines – The House ways and means committee approved on Monday, August 10, a bill seeking to expand tax relief for workers and small businesses, two weeks after President Ferdinand Marcos Jr. signaled it as a priority during his State of the Nation Address (SONA). The panel passed House Bill No. 10345, filed by Speaker Bojie Dy and Majority Leader Sandro Marcos, which aims to amend the National Internal Revenue Code of 1997 and allow individuals earning up to P350,000 annually to be exempt from income tax. Currently, only workers earning P250,000 or less per year are exempt from paying income tax. “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,” ways and means chairman Miro Quimbo said. Dy and Marcos’ second tax-related bill, which seeks to abolish the minimum corporate income tax of 2% for small businesses, also cleared the committee on Monday. “The objective…is to create breathing room for entrepreneurs and businesses so they can spend, invest, hire, and grow,” Quimbo said. Marcos drew thunderous applause during his penultimate SONA when he promised to pursue tax relief measures “to ensure the continued progress of the middle class” on the heels of the oil crisis. – Rappler.com How does this make you feel? Loading