Senator Sonny Angara said the middle class will experience some relief next year through income tax deduction.
“Yes. Next year there would be tax relief. Under the TRAIN law, there would be another income tax reduction,” Angara said during an interview at the sidelines of the 20th Philippine-Spanish Friendship Day celebration on Saturday, July 9.
“That will benefit the middle class—the teachers, ordinary employees who receive salaries that are subject to withholding tax. Their tax will be reduced next year,” he stressed.
Angara, who will resume his chairmanship of the Senate Committee on Finance in the 19th Congress, is referring to the Tax Reform for Acceleration and Inclusion Law (TRAIN Law), or Republic Act No. 10963.
Calls for financial assistance for the middle class have been gaining ground in the last few weeks as prices of fuel continue to soar due to the ongoing conflict in Ukraine.
On top of the oil price hike, most families are still struggling from the economic impact of the Covid-19 pandemic.
However, government financial subsidy or “ayuda” mostly target minimum wage earners and those who live below the poverty line.
Angara said he hopes the tax deductions under the TRAIN law could help, but promises to check other possible mechanisms that would help ease the financial struggles of the middle class sector.
The lawmaker also said he is open to the granting of cash subsidies for the middle class, provided that the government has sufficient funds for it.
“If it’s possible, why not? We’ll have to see the numbers. But when it comes to financial aid, of course, we need to first prioritize those who are below the poverty line,” Angara stressed.