THE House Committee on Ways and Means approved key tax reform measures on Monday, raising personal income tax exemptions for workers and relieving microenterprises from corporate tax burdens to bolster purchasing power and spur economic growth.
Chaired by Marikina 2nd District Representative Miro Quimbo, the committee approved House Bills No. 10345 and 10346, subject to style.
Authored by Speaker Faustino “Bojie” Dy III and Majority Leader Ferdinand Alexander “Sandro” Marcos, the legislation seeks to recalibrate the country’s revenue system in favor of individual taxpayers and small entrepreneurs.
Under the proposed amendment to Section 24 of the National Internal Revenue Code, the annual personal income tax exemption ceiling will increase to ₱350,000 from the current ₱250,000 threshold.
By restructuring the graduated tax brackets, the bill aims to shield low- and middle-income earners from inflation and provide workers with greater take-home pay.
“We want our tax system to keep pace with the realities faced by Filipino families and workers,” Quimbo said, noting that taxation should not further erode consumer purchasing power when wages struggle to keep up with the rising cost of living.
Alongside individual tax relief, the panel passed a measure exempting microenterprises from the 2% Minimum Corporate Income Tax (MCIT).
The exemption targets small businesses operating on thin margins or still recovering from economic disruptions, giving entrepreneurs additional capital to reinvest in operations, retain staff, and expand.
“The objective is not simply to reduce taxes,” Quimbo explained. “It is to create breathing room for entrepreneurs and businesses so they can spend, invest, hire, and grow.”
Addressing potential revenue losses, the committee plans to consolidate these relief measures with corresponding compensatory revenue initiatives into a single omnibus tax reform package.
Quimbo emphasized that while delivering tax relief remains a priority, the panel is committed to maintaining fiscal sustainability so the government can continue funding essential public services and development programs.
