President Marcos has given Congress a "clear policy direction" to finally provide meaningful tax relief to millions of Filipino workers whose purchasing power has been steadily eroded by inflation and the rising cost of living.

Thus, said House Committee on Labor and Employment Chairperson Cavite 1st district Rep. Jolo Revilla following President Marcos' pronouncements in his fifth and penultimate Street of the Nation Address (SONA).

“The President has made it clear that the time has come to provide greater tax relief to Filipino workers. With this clear policy direction from the Chief Executive, Congress now has an opportunity to expedite deliberations on pending measures that will increase the income tax exemption threshold and allow our workers to keep more of what they earn,” Revilla said on Thursday, July 30.

He noted that he filed House Bill (HB) No. 7952 as early as February this year after recognizing the urgent need to cushion workers from rising prices by increasing their take-home pay.

HB No. 7952 proposes increasing the annual income tax exemption from the current P250,000 to P400,000.

But Revilla says he is prepared to adopt the President’s proposed P350,000 threshold--as stated in his SONA last July 27--if it would help build consensus and speed up the measure’s passage.

“The important thing is to deliver tax relief to Filipino workers as soon as possible. I am willing to adopt the President’s proposed threshold if it will help accelerate the approval of this measure. What matters most is that our workers immediately feel the benefits,” he said.

Revilla expressed confidence that with the President’s endorsement, Congress could move swiftly and enact the measure before the end of the year.

“I am hopeful that with the President’s support and the cooperation of both chambers of Congress, we can pass this measure and have it signed into law before the end of the year.

"Our workers have waited long enough for meaningful tax relief, and now is the time to deliver it,” the ranking solon pointed out.

Aside from raising the income tax exemption threshold, HB No. 7952 also seeks to increase the ceiling for tax-free 13th month pay and other bonuses from P90,000 to P150,000.

Revilla acknowledged estimates that expanding the income tax exemption could reduce government revenues by P50 billion to P53 billion annually, but said any short-term revenue loss would be outweighed by the broader economic benefits generated by stronger household spending.

“Any initial revenue loss will be offset by stronger economic activity. When workers bring home more of their salaries, they spend more on food, transportation, housing, education, healthcare, and other basic needs," he said.

"That increased consumer spending stimulates businesses, generates higher VAT collections, boosts corporate earnings and income tax revenues, supports job creation, and ultimately expands the country’s tax base,” Revilla pointed out.

He stressed that putting more disposable income in the hands of workers would not only help families cope with rising living costs but would also strengthen domestic consumption, one of the country’s primary drivers of economic growth.

“Our tax system must keep pace with economic realities. As the cost of living continues to rise, workers deserve a tax structure that gives them greater financial breathing room instead of reducing their take-home pay,” said the Caviteño.