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Manila Bulletin devider Philippines devider National devider Erwin Tulfo bill seeks one-month income tax holiday amid ghost project scandal

Erwin Tulfo bill seeks one-month income tax holiday amid ghost project scandal

Published Oct 8, 2025 01:01 pm

At A Glance

  • Senator Erwin Tulfo filed a bill proposing a one-month income tax holiday in 2025 to provide immediate relief to workers and restore public trust following the multi-billion peso ghost infrastructure scandal.
Senator Erwin Tulfo has proposed a bill seeking to provide a one-month income tax holiday amid the multibillion-peso controversy surrounding ghost infrastructure projects.
Senator Erwin Tulfo (Senate PRIB photo)
Senator Erwin Tulfo (Senate PRIB photo)
Tulfo, vice chairman of the Senate Blue Ribbon Committee, filed Senate Bill No. (SBN) 1446 known as the ‘One-Month Tax Holiday of 2025’ as he acknowledged the need for a “far, extraordinary, and immediate form of relief” that will return benefits directly to the people, particularly the working population.
“The exposure of alleged anomalies on flood control projects, involving billions of pesos in public funds have gravely eroded public trust in government fiscal stewardship. The Filipino people have raised a clear and resounding clamor— ‘Ibalik ang pera ng bayan. Ibaba ang tax (return the people's money. Lower the tax),’” said Tulfo.
“The welfare of the people is the supreme law. It is therefore just and necessary that the State respond by providing tangible relief to the very taxpayers who sustain it,” he emphasized.
Under Tulfo’s measure, the one-time, one-month income tax holiday will be applicable to individual taxpayers receiving compensation income, which will be on the first payroll month immediately following the approval of the bill.
For mixed-income earners, only the portion classified as compensation income shall be exempted from income tax.
The proposed tax holiday will not cover the mandatory contributions to the Government Service Insurance System, Social Security System, PhilHealth, Home Development Mutual Fund, and loan amortizations and other payments voluntarily authorized by the employee.
The bill also includes a non-diminution clause, which will ensure that employers cannot reduce employee wages during the tax holiday month.
“While taxation is recognized as the lifeblood of the State, we must equally recognize that his lifeblood flows from the people themselves,” the Senator said.
Tulfo, during the Senate probe on flood control mess, has been a staunch advocate of returning the people’s money allegedly siphoned by corrupt government officials and contractors.

Related Tags

Erwin Tulfo ghost projects Senate Blue Ribbon Committee flood control probe
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