Senator Paolo “Bam” Aquino IV on Friday, July 24 pushed for the passage of the bill seeking to raise the annual income tax exemption threshold from P250,000 to P480,000.

Aquino said this would increase the take-home pay of more Filipino workers and help them cope with the already high cost of living.

Under Aquino’s Senate Bill No. 267, the proposed amendment to the National Internal Revenue Code would exempt individuals earning up to P480,000 a year from paying income tax.

Filed on July 8, 2025,  the bill was one of the earliest measures Aquino filed following his 2025 successful senatorial campaign, where Filipinos called for affordable living and increase in take-home pay.

“It has been stalled for nearly a year, so we are hopeful that when the session opens, it will be included in the priority legislation to provide immediate assistance and better wages to our fellow citizens, thereby increasing their take-home pay,” Aquino said.

“It is high time to enact this into law, given the numerous price hikes for goods and services. Workers' wages have lagged behind these increases, and their purchasing power has diminished,” he explained.

The senator noted that the current exemption level, which was set under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, has become outdated as inflation continues to erode workers' purchasing power.

Aside from easing the financial burden on Filipino families, Aquino also said raising the income tax exemption threshold will allow workers to keep more of what they earn, and in turn, give them additional resources to spend on essential needs such as food, education, and healthcare.

The measure will also help boost consumer spending and economic activity, the lawmaker said.