HOUSE Senior Deputy Minority Leader and Mamamayang Liberal (ML) Partylist Rep. Leila de Lima has introduced a measure aimed at easing the burden on low- and lower-middle-income earners by increasing the income tax exemption ceiling for individual taxpayers from P250,000 to P480,000 annually.
Under her proposed House Bill No. 9172, which fully adopts Senate Bill No. 267 filed by Senator Paolo Benigno “Bam” Aquino IV, the Bicolana lawmaker seeks to amend Section 24(A)(2)(a) and (b) of the National Internal Revenue Code of 1997, as amended.
“Ensuring that tax systems remain equitable, efficient, and responsive to inflation is essential to balancing revenue generation with the protection of taxpayers’ real income and purchasing power,” De Lima said.
“Sa mahal ng gasolina, kuryente, tubig, at ng mga bilihin, isama pa ang iba pang kakaltasing kontribusyon sa gobyerno, wala nang natitira o kulang na kulang ang sweldong natatanggap ng marami nating kababayan. Ilang araw pa lang ang lumipas pagkasweldo, petsa de peligro na agad.”
“Paano pa kung may krisis na, o kung may magkasakit sa pamilya? One way to lessen the economic challenges confronting many of our countrymen is to implement reforms in income tax exemption that will increase their take-home pay or disposable income,” she added.
Under the current income tax system mandated by the passage of the Tax Reform for Acceleration and Inclusion (TRAIN) Law, individuals earning up to ₱250,000.00 annually are exempt from personal income tax.
However, once annual earnings exceed this threshold, a progressive tax structure applies, with rates ranging from 15 to 35 percent. As a result, even modest increases in income can lead to disproportionately higher tax liabilities.
In pushing for her proposed measure, De Lima also underscored the need for a periodic review and reasonable adjustment of tax policies, especially amid the continued rise in country’s inflation.
According to the Philippine Statistics Authority (PSA), the country’s overall inflation increased to 7.2% in April 2026 from 4.1% in March 2026, marking the highest inflation rate in three years.
“We understand that taxes are a source of funding for critical public services such as education, healthcare, and public safety. Pero kung pigang-piga na ang binubuwisan tulad ng ating mga middle class na nagkakandakuba na sa pagbabanat ng buto pero nababaon pa rin sa hirap at utang, dapat agarang kumilos ang gobyerno para pagaanin ang kanilang pasanin,” De Lima stressed.
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