Camille Naredo

Customers purchase goods at a supermarket in Manila om February 16, 2023.

Customers purchase goods at a supermarket in Manila om February 16, 2023. Suggested retail prices of a number of basic goods have gone up since February 8, according to the Department of Trade and Industry. Mark Demayo, ABS-CBN News

Article (news)

DTI-INSPECTION

Jekki Pascual

ABS-CBN News

<div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/178533394714220230216-dti-price-inspection-MD-2066.jpg" style="width:960px" class="fr-fic fr-dib" width="960" alt="Customers purchase goods at a supermarket in Manila om February 16, 2023. Mark Demayo, ABS-CBN News/File"/>Customers purchase goods at a supermarket in Manila on February 16, 2023. Mark Demayo, ABS-CBN News/File</div>MANILA -- The Department of Finance projects that 1.3 million more Filipinos will benefit from the proposed expansion of the income tax exemption.Finance Secretary Frederick Go said the proposal to raise the income tax exemption ceiling from the current P250,000 annual salary to P350,000 will benefit more Filipinos.“Before we had 5.1 million Filipinos exempt, if this reform is passed it will go up from 5.1 million Filipinos to 6.3 million Filipinos,” Go said.<div><a class="fr-green" href="https://www.abs-cbn.com/news/nation/2026/7/29/house-bill-seeking-to-increase-tax-exempt-annual-income-ceiling-to-p350-000-filed-1248">House bill seeking to increase tax-exempt annual income ceiling to P350,000 filed by House leaders</a></div>On top of this, even those earning over P350,000 a year will also be affected, because their income tax will also be reduced. Go estimates total workers who will benefit could reach to at least 3.13 million workers, including both the tax exempt workers and those with reduced income tax.Go said if the proposal is approved, those earning P250,000 to 350,000 will have P15,000 additional annual income since they no longer need to pay income tax. For those earning P350,000 and above, they will get a maximum of P17,500 more in their annual take-home pay.“This is timely and meaningful tax reform that puts more money in the pockets of millions of Filipinos… Everybody above 350,000 as well will also benefit from the raising of the threshold of personal income tax exemption so this will include the great middle class,” he added.Go admitted however that government stands to lose about P60 billion in annual revenues because of the expanded tax exemption, but he is not worried because they can also look for other sources of revenue.&quot;The most obvious sources of revenue are what we call excise taxes… Normally they would be the same industries that will have to be covered,&quot; he said.<div><a class="fr-green" href="https://www.abs-cbn.com/news/business/2026/7/27/marcos-seeks-tax-relief-for-individuals-small-businesses-1654">Marcos seeks tax relief for individuals, small businesses</a></div>Tax expert Mon Abrea also welcomed the proposal, but said he wants the ceiling to go high to one million pesos by 2028. He said this can be done in phases within three years so more Filipinos will benefit from their hard earned money.“Para mas dumami yung mga manggagawang Pilipino na makikinabang sa pinaghirapan nilang pera,” Abrea said.The Senate and the House of Representatives have filed various bills on expanding the income tax exemption.

The Department of Finance projected that 1.3 million more Filipinos will benefit from the proposed expansion of the income tax exemption.

The Department of Finance projected that 1.3 million more Filipinos will benefit from the proposed expansion of the income tax exemption.

DOF: Take-home pay to increase with tax-exempt proposal

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DOF: Take-home pay to increase with tax-exempt proposal

Jekki Pascual,

ABS-CBN News

Published July 29, 2026 10:07 PM PHT

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Income tax

Tax exemption

Department of finance

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