Amid the Situation of Many Middle Class Earners, Senate Wants Tax Exemption Threshold Raised to P400,000 Annually
The Senate is pushing for a higher take-home pay for the Filipino workers through increasing the tax exemption threshold in the Philippines.
Millions of Filipinos belong to the middle class earners in the Philippines. Recently, amid the high oil costs in the country which was triggered by the war in the Middle East, Senator Erwin Tulfo called on the government to include the middle class earners in the giving of ayuda. His statement came amid the poorest of the poor being the constant target of the assistance from the government.
Tulfo called the middle class earners as the “backbone of our labor force”. According to him, the government is focusing on many other sectors but this sector is supposedly not given attention.
“Tama naman po, tulungan natin [ang] mahirap, but what about the backbone of our labor force? Kasi I keep on reading (that) we are so focused on several sectors. But what about these sectors?” the Senator said.
Recently, the Senate pushed for a bill that proposes for a higher tax exemption threshold in the Philippines. Based on News5, this move aims to increase the take-home pay of the middle class earners in the country.
From P250,000 every year, the Senate wants the income tax exemption threshold in the Philippines raised to P400,000 annually. Based on the post, the proposal is under the ranting Increase in Take-Home Pay for All Working Filipinos Act or the GINHAWA.
Furthermore, the proposal also aims to increase the ceiling tax-free bonus to Php 150,000. Currently, the maximum bonus that is tax-free in the Philippines is P90,000.
“The middle class has been the lifeblood of the local economy, driving domestic consumption and contributing significantly to government revenue,” Sen. Sherwin Gatchalain, the author of the proposal, said.
Recently, Senate President Tito Sotto assured that the possible impeachment trial of Vice Pres. Sara Duterte will not affect the legislative work of the senators. He stressed that convening as an impeachment court is part of their job and they have 17 priority bills that they intend to work on before June 5.
