Senator Jinggoy Estrada wants Filipino workers to pay lower income taxes

Senator Jinggoy Ejercito Estrada has filed a measure to reduce individual income tax rates and boost workers’ take-home pay, especially for low- and middle-income earners.

Estrada said this is to help Filipino workers cope with inflation and rising living costs.

“Kapag mas malaki ang natitira sa sahod, mas nakakagastos ang pamilya, mas umiikot ang pera sa ekonomiya, at mas gumaganda ang kalidad ng buhay. Kailangan natin iparamdam ang tunay na benepisyo ng tax reform sa ating mga manggagawa – ang mas malaking take-home pay,” Estrada said.

The veteran legislator filed Senate Bill No. 1685, which proposes to adjust the income tax brackets beginning in 2027 by amending Section 24 of Republic Act No. 8424, or the National Internal Revenue Code of 1997.

Estrada explained that the proposed measure is intended to ensure that workers fully experience the benefits of the Tax Reform for Acceleration and Inclusion (TRAIN) law.

The TRAIN law initially increased workers’ take-home pay by lowering income taxes. However, studies — including one published in 2022 by the Al-Kindi Center for Research and Development — found that these gains were gradually eroded as prices of goods and services, particularly necessities, also went up.

To address these concerns, Estrada said his proposal aims to further increase workers’ disposable income.

Under the bill, individuals earning up to P500,000 annually would be exempt from income tax, while those earning above this amount would be subject to lower rates compared to the current tax structure.

If enacted, Estrada said the measure would provide immediate relief to low- and middle-income earners, allowing them greater financial flexibility to meet daily expenses, build emergency savings, and invest in their children’s education.

“This is about giving our workers a fair chance at a better life. Lower taxes mean higher take-home pay, and higher take-home pay means stronger families and a stronger nation,” the senator said.

-Paraluman News