Senator Mark Villar seeks higher income tax exemption ceiling amid rising costs

Senator Mark Villar has introduced Senate Bill No. 2137, a measure that proposes to increase the annual income tax exemption threshold from ₱250,000 to ₱360,000.

The bill aims to provide financial relief to Filipino workers and their families by mitigating the impact of rising living costs.

Villar's proposal addresses the ongoing inflationary pressures affecting household budgets nationwide.

The Bangko Sentral ng Pilipinas recently projected that inflation will average 3.6 percent this year, exceeding the government’s 3.0 percent target.

Data from the Philippine Statistics Authority also indicates sustained price increases for food, fuel, electricity, transportation, and other essential goods and services.

Villar noted that the current income tax exemption ceiling no longer reflects the economic realities many Filipinos face.

Workers continue to struggle with rising household expenses despite having steady employment.

Under Villar's proposed legislation, individuals earning up to ₱360,000 annually would be exempt from paying income tax.

The proposal also seeks to revise the graduated income tax brackets to better align with current economic conditions and inflation levels.

“Habang patuloy na tumataas ang presyo ng mga pangunahing bilihin at serbisyo, dapat lamang na mabigyan ng dagdag na ginhawa ang ating mga manggagawa. Sa pamamagitan ng panukalang ito, mas malaking bahagi ng kanilang kinikita ang maiuuwi nila para sa pang-araw-araw na pangangailangan ng kanilang pamilya,” Villar said.

The senator stated that the proposed measure aims to reduce the tax burden on workers while stimulating household spending and economic activity by boosting consumer purchasing power.

“Layunin nating magkaroon ng mas patas at mas makataong sistema ng pagbubuwis—bilang pagkilala na din sa hirap at sakripisyo ng ating mga manggagawa, ay susuportahan natin sila sa at isa sa mga hakbang ay pagbibigay ng tax relief,” Villar added.

Villar, as chair of the Senate Finance Committee, also emphasized his commitment to economic policies that prioritize responsible fiscal management, safeguard taxpayer welfare, and promote inclusive growth.

-Paraluman News