Bam Aquino Pushes ₱480,000 Tax-Free Threshold

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What Readers Should Know

Senator Bam Aquino renewed his push to raise the annual personal income tax exemption ceiling to ₱480,000. He said the proposed relief could help households manage rising costs and support local businesses.

Key Takeaways

Senate Bill No. 267 proposes a ₱480,000 annual income tax exemption ceiling.
The proposed amount is equivalent to ₱40,000 monthly.
Philippine headline inflation reached 7.8 percent in October 2026.
Aquino is also pursuing proposals to reduce VAT and exempt electricity sales from VAT.
The proposed exemption does not take effect through the announcement alone.

The senator says a higher tax-free threshold could help workers keep more of their income for household needs.

Senator Bam Aquino renewed his call to raise the annual personal income tax exemption ceiling to ₱480,000, arguing that Filipino workers need greater relief as rising prices put pressure on household budgets.

Senate Bill No. 267 proposes increasing the ceiling from ₱250,000 to ₱480,000 annually, equivalent to ₱40,000 a month. The bill seeks to amend the individual income tax provisions of the National Internal Revenue Code.

The renewed push comes as Philippine headline inflation accelerated to 7.8 percent in October 2026 from 7.2 percent in September, according to the Philippine Statistics Authority.

For families, Aquino said, the concern is practical: the same budget buys fewer necessities, leaving less room for food, education, healthcare, and other expenses.

“Dapat mas malaki ang matira sa kanilang suweldo para may sapat silang pambili ng pagkain, bigas at iba pang pangunahing pangangailangan,” he said.

Aquino described the proposed ₱40,000 monthly equivalent as an ideal living wage for a family of four or five. That figure reflects his proposal’s rationale; it should not be read as an existing nationwide minimum wage.

He also argued that higher take-home pay could support neighborhood businesses. When households have more money available for necessities, their spending can help sustain livelihoods in markets, stores, and other community enterprises.

Alongside the income tax measure, Aquino is pushing Senate Bill No. 2047, which his office said seeks to reduce value-added tax on goods and services, including petroleum products, from 12 percent to 10 percent. Senate Bill No. 266 separately proposes exempting electricity sales from VAT.

These measures remain proposals. The renewed appeal does not itself change workers’ payroll deductions or establish a new tax exemption.

For readers, the central issue is how tax policy can respond to the growing cost of everyday life. Aquino’s proposal would give qualifying taxpayers more room in their household budgets if enacted.

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