Senator Bam Aquino has proposed increasing the income tax exemption cap in the Philippines to address rising inflation. The measure aims to provide relief to middle-income earners affected by the depreciation of the peso. Aquino emphasized the need for legislative action to stabilize household incomes amid economic uncertainty.
The proposal comes as inflation continues to climb, driven by higher import costs and domestic price pressures. The Philippine Central Bank has warned of persistent inflationary pressures, with the peso losing significant value against the US dollar. Aquino’s bill would adjust the tax exemption threshold to reflect current living costs, potentially reducing the tax burden on more families.
This is not the first time Aquino has advocated for tax reform. In 2022, he introduced a similar bill to address income inequality and support economic growth. The current proposal follows a series of economic reports highlighting the need for fiscal adjustments to maintain consumer spending. The government has yet to formally endorse the measure, but it has drawn attention from economic analysts and lawmakers.
