Marilyn Cahatol

Taxpayers line up to file their Annual Income Tax Returns (AITR) at Bureau of Internal Revenue office in Intramuros, Manila on April 17, 2023.  Jonathan Cellona, ABS-CBN News Taxpayers line up to file their Annual Income Tax Return (AITR) at Bureau of Internal Revenue office in Intramuros, Manila on April 17, 2023.  Jonathan Cellona, ABS-CBN News

Article (news)

INCOME TAX FILING

Jekki Pascual

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px;display:block" width="960"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/178515939323820230417-bir-income-tax-return-JC4918.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/><span class="fr-inner" style="text-align:left">Taxpayers line up to file their Annual Income Tax Returns (AITR) at Bureau of Internal Revenue office in Intramuros, Manila on April 17, 2023.  Jonathan Cellona, ABS-CBN News Taxpayers line up to file their Annual Income Tax Return (AITR) at Bureau of Internal Revenue office in Intramuros, Manila on April 17, 2023. <em>Jonathan Cellona, ABS-CBN News </em></span></span></span></div><p>MANILA — President Ferdinand Marcos Jr.&#x27;s statement on tax incentives for the middle class during his State of the Nation Address drew mixed reactions from various sectors.</p><p>Marcos had said that among the tax measures to help middle-income earners are <a href="https://www.abs-cbn.com/news/business/2026/7/27/marcos-seeks-tax-relief-for-individuals-small-businesses-1654">expanding the income tax exemption</a> from P250,000 annual income to P350,000.</p><p>In this proposal, all those who earn up to P350,000 a year will no longer have to pay an income tax.</p><p>“Nananawagan ako sa Kongreso upang maipasa ang batas na magbibigay ng bahagyang ginhawa para sa ating bayaring buwis. Una, palawakin natin ang exemption sa income tax,” Marcos said during his SONA which drew a loud applause from the audience.</p><p>The Department of Economy, Planning, and Development welcomes this proposal. In fact Secretary Arsenio Balisacan said the economic team has already reviewed the impact of the measure including the effect on a cut in government revenues.</p><p>“We did discuss already among the Cabinet, the economic team, how to fund or replace those revenues foregone from the exemptions given to low income taxpayers,” said Balisacan.</p><p>He said one proposal to get more taxes is to instead increase tax on unhealthy goods. He now hopes this proposal will be discussed by lawmakers this year.</p><p>ACT Teachers Party-List Rep. Antonio Tinio said he welcomed the expansion the income tax exemption, but said the president’s proposal is not enough.</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/27/house-fully-supports-marcos-call-for-tax-relief-measures-speaker-dy-2028">House &#x27;fully supports&#x27; Marcos&#x27; call for tax relief measures — Speaker Dy</a></div><p>“Matagal ng clamor ng lower and middle income earners na wala silang tulong nakukuha sa gobyerno…. Necessarily na magbigay ng relief. One form is income tax relief. Generally, tama yun,” he said.</p><p>But Tinio, author of a bill to raise the exemption to P500,000, said the proposal falls short.</p><p>He said the P350,000 ceiling is still low especially with elevated inflation. He said if more Filipinos get exempted from income tax, this will help the economy because the public’s purchasing power will also increase.</p><div><br/></div><div><strong>RELATED VIDEO:</strong></div><div style="text-align:center"><iframe width="560" height="315" src="https://www.youtube.com/embed/4pa2THcEy2Q?si=Hm496axm8CBZ_val" title="YouTube video player" frameBorder="0" allowfullscreen=""></iframe><br/></div>

<p>President Ferdinand Marcos Jr.'s statement on tax incentives for the middle class during his State of the Nation Address drew mixed reactions from various sectors.</p>

President Ferdinand Marcos Jr.'s statement on tax incentives for the middle class during his State of the Nation Address drew mixed reactions from various sectors.

DEPDev, group share mixed reactions on Marcos’ tax measure for the middle class

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DEPDev, group share mixed reactions on Marcos’ tax measure for the middle class

Jekki Pascual,

ABS-CBN News

Published July 27, 2026 09:56 PM PHT

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