MANILA — Sen. Bam Aquino is pushing for the passage of a measure that would increase the annual income tax exemption threshold from P250,000 to P480,000 to raise the take-home pay of Filipino workers and provide relief from the rising cost of living.

Under Senate Bill No. 267, Aquino is proposing amendments to the National Internal Revenue Code that would exempt individuals earning up to P480,000 annually from paying income tax.

The measure, filed on July 8, 2025, was among the first bills Aquino introduced after returning to the Senate following the 2025 elections.

“Halos isang taon na itong hindi gumagalaw kaya umaasa tayo na sa pagbukas ng session, maisama ito sa priority legislation para agarang matulungan at mabigyan ng ginawa ang ating mga kababayan at maitaas ang naiuuwi nilang sahod,” Aquino said.

“Napapanahon na upang isabatas ito sa harap ng napakaraming pagtaas ng presyo ng bilihin at serbisyo. Napag-iwanan na ang suweldo ng ating manggagawa sa mga pagtaas na ito at nabawasan na rin ang kanilang purchasing power,” he explained.

Aquino said the current income tax exemption threshold under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, no longer reflects prevailing economic conditions as inflation continues to reduce workers’ purchasing power.

He said increasing the exemption threshold would allow workers to retain more of their earnings, helping them cover essential expenses such as food, education, and healthcare while supporting consumer spending and economic activity.

Aside from Senate Bill No. 267, Aquino has also filed measures aimed at easing the financial burden on Filipinos amid rising prices.

Senate Bill No. 266 seeks to exempt the sale of electricity by generation, transmission, and distribution companies, as well as electric cooperatives, from the value-added tax (VAT), while Senate Bill No. 2047 proposes reducing the VAT rate on goods and services, including petroleum products, from 12 percent to 10 percent.