SENATE President Win Gatchalian is pushing for the passage of a tax relief measure that would raise workers’ take-home pay as higher oil prices threaten to further erode household purchasing power.
In a statement on Sunday, Gatchalian said continued tensions in the Middle East could drive global oil prices higher, pushing up local fuel costs and potentially increasing the prices of basic goods and services, including electricity.
He urged the immediate passage of Senate Bill 56, or the “Ginhawa” measure, which seeks to raise the annual income tax exemption threshold from P250,000 to P400,000 and increase the ceiling for tax-free bonuses from P90,000 to P150,000.
Authored by Gatchalian, the Granting Increase in Take-Home Pay for All Working Filipinos Act seeks to amend several provisions of the National Internal Revenue Code to increase workers’ disposable income and provide broader tax relief.
Under the bill, the first P400,000 of annual income would be exempt from income tax, while the ceiling for tax-exempt 13th-month pay and other bonuses would be raised to P150,000.
The measure also proposes removing taxes on service charges received by employees in the service industry and exempting additional compensation such as overtime pay, holiday pay, night-shift differential, and hazard pay from income tax.
The bill also seeks to exempt honoraria and allowances received by individuals providing election-related services for the Commission on Elections (Comelec), among other proposed changes to the tax code.
Gatchalian said higher fuel costs could also raise transport and production expenses, adding to pressure on household budgets.
The proposed tax relief would give workers more disposable income that could help cushion the impact of rising prices, he said.
“The middle class also needs support to ease the burden caused by rising oil prices and basic goods,” Gatchalian said.
“The middle class has been the lifeblood of the local economy, driving domestic consumption and contributing significantly to government revenue,” he added.
