Navotas City lone district Rep. Tobias "Toby" Tiangco has joined the legislative effort to increase the annual income tax exemption threshold from ₱250,000 to ₱350,000, which no less than President Marcos sought in his latest State of the Nation Address (SONA).

Tiangco filed House Bill (HB) No. 10451, which also sought to adjust the income tax structure to maintain the progressive nature of the country's income tax system.

He says this ensures that taxpayers across different income levels benefit from the proposed reform.

“Sa panukalang batas, hindi na magbabayad ng income tax ang mga may annual taxable income na ₱350,000 pababa. Makikinabang din ang mga kumikita nang higit dito dahil maaari silang makatipid ng hanggang ₱15,000 sa buwis bawat taon. Katumbas ito ng dagdag na ₱1,250 sa kanilang buwanang kita na maaari nilang gamitin sa pagkain, pamasahe, kuryente, gamot, at iba pang pang-araw-araw na pangangailangan,” Tiangco explained.

(In the proposed law, those with annual taxable income of ₱350,000 and below will no longer pay income tax. Those earning more than this will also benefit, as they can save up to ₱15,000 in taxes each year. This is equal to an additional ₱1,250 in their monthly income, which they can use for food, transportation, electricity, medicine, and other daily needs.)

It was only last July 27 when President Marcos--in his fifth and penultimate SONA--called on Congress to study further tax relief measures for Filipino workers amid rising living costs.

"Habang tumataas ang presyo ng pagkain, kuryente, pamasahe at iba pang pangunahing pangangailangan, dapat ding sumabay ang ating tax system sa realidad ng buhay ng mga Pilipino," Tiangco said.

(As the prices of food, electricity, transportation, and other basic necessities continue to rise, our tax system must also keep pace with the realities of Filipino life.)

"Hindi lang tax exemption ang layunin ng batas na ito. Inaayos din natin ang tax schedule para maging mas patas salahat ng manggagawa, lalo na sa middle class na madalasnaiipit—hindi sapat ang kita, hindi kwalipikado sa ayuda, perolubos na apektado ng pagtaas ng presyo ng mga bilihin,” he added.

(The goal of this law is not only tax exemption. We are also fixing the tax schedule to make it fairer for all workers, especially the middle class who are often caught in between—not earning enough, not qualified for aid, but heavily affected by rising prices.)

Tiangco said the current ₱250,000 tax-free threshold has remained unchanged since the Tax Reform for Acceleration and Inclusion (TRAIN) Law took effect in 2018, despite years of inflation that have significantly eroded the purchasing power of Filipino families.

His bill cites Philippine Statistics Authority (PSA) data showing that inflation has substantially increased the cost of food, housing, electricity, transportation and other daily necessities, making an adjustment both timely and necessary.

The veteran lawmaker from Navotas argued that allowing workers to keep more of what they earn will not only provide immediate relief to households, but will also benefit the broader economy.

“Kapag mas malaki ang naiuuwi ng mga manggagawa, mas may kakayahan silang gumastos. Nakakatulong ito sa mgalokal na negosyo at nagpapalakas sa ekonomiya. Ito ang tax reform na direktang pakikinabangan ng ordinaryong Pilipino,” Tiangco said.

(When workers take home more, they have greater capacity to spend. This helps local businesses and strengthens the economy. This is the tax reform that ordinary Filipinos will directly benefit from.)

According to him, the measure is especially intended to provide relief to the country's working middle class, whose disposable income has been steadily squeezed by inflation.

"Our objective is simple: give hardworking Filipinos a fairer tax system that reflects today's economic realities. This is one concrete way we can help families cope with rising costs while stimulating economic activity from the ground up," explained Tiangco.

HB No. 10451 specifically amends Section 24 of the National Internal Revenue Code by raising the tax-exempt threshold to ₱350,000 and revising the succeeding tax brackets accordingly to maintain the progressivity of the income tax system.