SEN. Bam Aquino believes that raising the annual income tax exemption threshold from P250,000 to P480,000 would increase Filipino workers’ take-home pay and help cushion the impact of rising living costs.
Aquino urged Congress to prioritize Senate Bill (SB) 267 when sessions resume, noting that the proposal has been pending for nearly a year despite mounting inflation and calls for economic relief. “It has been dormant for almost a year, so we hope that when the session opens, it will be included in priority legislation to immediately help our countrymen by increasing their take-home wages and creating jobs,” Aquino said. Filed on July 8, 2025, the measure was among his first legislative proposals following campaign calls for affordable living and higher disposable income for Filipino families. The bill seeks to amend the National Internal Revenue Code by exempting individuals earning up to P480,000 annually from paying income tax. The current tax-exempt threshold of P250,000 was set under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (Train) Law, which took effect in 2018. Aquino argued that the existing exemption level no longer reflects present economic realities, because inflation has steadily eroded the workers’ purchasing power. “It is time to enact this in the face of the massive price increases in goods and services. Our workers’ salaries have been left behind by these increases, and their purchasing power has also decreased,” he said. Aquino said the additional disposable income after raising the threshold could help households better afford essential expenses, such as food, education and health care, while stimulating consumer spending and economic activity. He has also filed several measures aimed at easing the financial burden on consumers amid rising prices of basic goods, fuel and electricity. Under SB 266, Aquino seeks to exempt the sale of electricity by generation, transmission and distribution companies, as well as electric cooperatives, from the 12-percent value-added tax (VAT) in a bid to lower electricity rates. He also filed SB 2047, which proposes reducing the VAT rate on goods and services, including petroleum products, from 12 percent to 10 percent.
