Marcos pushes tax relief package



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President Ferdinand R. Marcos Jr. on Monday urged Congress to pass a package of tax relief measures that would raise income tax exemptions for workers, ease the tax burden on small businesses and grant amnesty on certain unpaid taxes.
In his fifth State of the Nation Address (SONA), Marcos proposed exempting employees earning up to P350,000 annually from paying income tax while reducing tax rates for those in higher income brackets to provide relief for middle-income earners.
"Magbibigay ng bahagyang ginhawa para sa ating bayaring buwis," the President said.
Marcos also called for exempting small businesses from the minimum corporate income tax, saying the measure would help support their growth.
In addition, he urged lawmakers to approve a tax amnesty covering unpaid income, estate, donor's and value-added taxes, including the corresponding penalties.
"So, to ensure the continued progress of the middle class amidst the lingering effects of the crisis, we will pursue tax relief measures that promote growth, generate revenue, and advance equity toward socio-economic sustainability," Marcos said.
The proposal comes amid growing calls from economists and tax experts to adjust income tax brackets, which have remained largely unchanged despite years of inflation, arguing that middle-income earners have become increasingly overtaxed.
Earlier this year, Senate President Sherwin Gatchalian filed the proposed GINHAWA bill, which seeks to raise the annual income tax exemption threshold to P400,000 from the current P250,000.