SENATE BILL SEEKS TO RAISE TAX-FREE INCOME LIMIT TO P350,000 ANNUALLY

Senate President Pro Tempore Vicente Sotto III filed a bill seeking to increase the annual income tax exemption ceiling from P250,000 to P350,000, allowing workers earning around P30,000 monthly or less to become tax-exempt starting January 2027. Senate Bill No. 2338 aims to provide tax relief amid rising costs of food, transportation, and electricity, which lawmakers said have outpaced wage increases. Sotto said the current tax exemption threshold under the Tax Reform for Acceleration and Inclusion (TRAIN) Law no longer reflects economic conditions and needs to be adjusted. The proposed measure also seeks to reduce taxes for earners above the new exemption level by P15,000 annually while maintaining the existing tax structure. The proposal follows President Ferdinand Marcos Jr.’s call for broader tax exemptions for workers and other relief measures for small businesses and taxpayers.