DOLE supports President Marcos' call to raise tax-free income cap to P350,000

The Department of Labor and Employment (DOLE) supports the call of President Ferdinand Marcos Jr. to raise the limits on income tax exemptions.

DOLE Secretary Francis Tolentino believed that through the initiative, middle-class workers throughout the Philippines would be able to take home a larger portion of their hard-earned paychecks.

He said the call for higher tax exemption limits is a vital measure that will greatly benefit workers across the country.

“If the threshold is set at PHP350,000 and below, definitely more people will be helped – not just minimum wage earners, but also those earning slightly above the minimum wage,” he said in a statement Tuesday.

To carry out the President’s tax proposal, Tolentino said there is a need for urgent amendments to the National Internal Revenue Code (NIRC).

“The amendment to the NIRC needs to happen ASAP (as soon as possible); that was the call made last night. It involves a Congressional Act – legislation. So, if it is made a priority, it can be done very quickly,” the DOLE chief said.

Tolentino said he is optimistic that concrete steps will be taken toward the President's tax exemption plan before the year comes to an end.

“Lawmakers and government officials should move quickly to advance the proposal, helping to speed up the process of delivering extra financial support to hardworking Filipinos,” he said.

In his fifth State of the Nation Address (SONA) Monday, Marcos pushed for tax reform by urging lawmakers to expand the tax exemption threshold.

Under the proposal, individuals who earn PHPP350,000 annually would be exempt from paying income tax, helping them keep more of their earnings. (PNA)