Marcos Calls On Congress To Pass Tax Relief Measures

Acknowledging that the middle class is also hit hard by rising fuel prices, President Marcos pushed for relief measures that would expand income tax exemptions and spare small businesses from corporate income tax.

During his fifth State of the Nation Address on Monday, July 27, Marcos said the government launched aid packages to soften the impact of the Middle East conflict on various sectors, including transportation, agriculture and migrant workers.

While the existing initiatives are designed to help needy households, Marcos gave assurance that the Filipino workers, especially the middle class, and small enterprises would not be neglected.

 “We know that they are also burdened by the effect of the crisis,” the Chief Executive said.

“To ensure the continued progress of the middle class amidst the lingering effects of the crisis, we will pursue tax relief measures that promote growth, that generate revenue, and advance equity toward socio-economic sustainability,” he added.

Marcos urged Congress to pass a law expanding income tax exemptions, to include those whose earnings do not exceed P350,000 per year. Currently, individual taxpayers whose yearly taxable income is P250,000 or less are exempt from the payment of income tax.

“This will be accompanied by the lowering of income tax of other workers,” the Chief Executive said.

The President also called for a measure exempting small businesses from minimum corporate income tax and the granting of amnesty for unpaid tax dues, including income tax, estate tax, donor’s tax and value added tax, and their corresponding penalties.

Marcos said more than 7.5 million needy families have benefited from the government’s aid initiatives, which stemmed from his declaration of a state of national energy emergency last March.

The administration has released P12.375-billion to bankroll the assistance to be given under the UPLIFT program, which stands for Unified Package for Livelihoods, Industry, Food and Transport.