Marcos seeks tax relief for workers, small firms

President Ferdinand R. Marcos Jr. on Monday urged Congress to pass a package of tax relief measures aimed at easing the financial burden on workers and small businesses, saying the proposals are designed to strengthen the middle class and promote long-term economic growth.

In his fifth State of the Nation Address (SONA), the President called for increasing the income tax exemption threshold by making individuals earning up to P350,000 annually exempt from paying income taxes. He also proposed adjusting tax rates for workers in higher income brackets to make the tax system more equitable.

“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,” Marcos said.

The President likewise sought the removal of the minimum corporate income tax for small businesses, saying the move would provide much-needed support to enterprises still working to expand and recover from economic challenges.

Marcos also appealed to lawmakers to approve a tax amnesty covering unpaid income, estate, donor’s and value-added taxes, including the penalties and surcharges attached to them.

“Kasama na rin dyan ang mga multa na kaakibat ng mga ito,” the President said.

The proposed reforms come amid renewed calls from economists and tax experts to update the country’s tax structure to reflect current economic conditions. They have long argued that middle-income earners shoulder a disproportionate share of the tax burden while grappling with higher living costs brought about by persistent inflation.

If enacted, the proposed measures are expected to provide additional disposable income for millions of workers, improve the business environment for small enterprises, and encourage taxpayers with outstanding liabilities to settle their obligations under more favorable terms.