P400,000 income tax exemption sought to raise take-home pay

A senator is pushing for the urgent passage of a tax relief bill that seeks to raise workers' take-home pay as middle-income Filipinos grapple with rising prices.

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The proposed Granting Increase in Take-Home Pay for All Working Filipinos Act, or GINHAWA, seeks to amend the National Internal Revenue Code by raising the income tax exemption threshold from P250,000 to P400,000 a year.

The bill’s goal is to provide “equitable relief to a greater number of taxpayers and their families” by improving disposable income and increasing economic activity.

“The middle class has been the lifeblood of the local economy, driving domestic consumption and contributing significantly to government revenue,” Sen. Sherwin Gatchalian said in a statement Tuesday, May 5.

He said the middle class has been the “lifeblood” of the local economy, driving consumption and contributing significantly to government revenue.