President Ferdinand R. Marcos Jr. urged Congress on Monday to pass a progressive tax relief package designed to ease the financial burden on middle-class workers and support micro, small, and medium enterprises (MSMEs) as the nation continues its economic recovery.
Delivering his State of the Nation Address (SONA) before a joint session of Congress at the Batasang Pambansa, President Marcos emphasized that sustaining the momentum of the middle class is essential for long-term, equitable economic growth.
“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, generate revenue, and advance equity toward socio-economic sustainability,” President Marcos declared.
Acknowledging that middle-income earners and small business owners face distinct financial pressures, the President emphasized the government’s responsibility to protect their hard-earned income.
“Kaya bilang natatanging proteksyon sa kanila at para mas mapakinabangan nila ang pinaghirapan nilang kita, nananawagan ako sa Kongreso upang maipasa ang batas na magbibigay ng bahagyang ginhawa para sa ating bayaring buwis,” he said.
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Higher Tax Exemption Ceiling: The threshold for tax-free annual income will increase from PhP 250,000 to PhP 350,000. “Dagdagan natin ang mga manggagawang malilibre sa buwis sa kanilang kita. Isasama na natin ang mga kumikita ng hindi lalagpas sa PhP 350,000 kada taon,” President Marcos noted.
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Reduced Income Tax Rates: Lower income tax brackets will see reduced tax rates to boost overall disposable income for tax-paying workers.
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Exemption for MSMEs: Smaller businesses will no longer be required to pay the Minimum Corporate Income Tax (MCIT), freeing up capital for expansion and job creation.
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Broad-Based Tax Amnesty: A comprehensive tax amnesty will cover unpaid income, estate, donor’s, and value-added taxes (VAT), including waived penalties and surcharges.
The President highlighted that the tax amnesty program aims to provide taxpayers with a fresh start, peace of mind, and a clear path toward voluntary tax compliance.
The proposed legislation forms a key pillar of the administration’s broader socio-economic agenda aimed at strengthening economic resilience, improving the business landscape, and ensuring inclusive prosperity across all sectors.
