In his third State of the Nation Address, President Ferdinand Marcos Jr. urged Congress to pass legislation that would lower income tax rates for middle-class workers, aiming to boost their disposable income and stimulate domestic consumption. The proposal, reported by Philstar Biz, is part of a broader effort to ease the financial burden on salaried employees amid persistent inflationary pressures.
The proposed tax breaks would primarily benefit workers earning between PHP 250,000 and PHP 3 million annually, effectively reducing their effective tax rate. Marcos said the measure is intended to put more money into the pockets of Filipino families and encourage spending, which could further drive economic growth.
Economic analysts note that the plan, if enacted, would mark the first major adjustment to the country's personal income tax brackets since the Tax Reform for Acceleration and Inclusion (TRAIN) law took effect in 2018. The administration expects the tax relief to be offset by improved collections from other revenue measures and sustained economic expansion.